UK sends gas to Europe for first time this summer

UK sends gas to Europe for first time this summer


S&P Global Platts Analytics data showed that the UK has exported natural gas to Europe for the first time this summer season. 

Gas exports from the UK to mainland Europe have again become profitable, as a continental premium quickly opened up on the spot soon after June delivery began.

The following initiation of flows, however, may have taken some by surprise given that the normally traditional exports from the UK have not taken place this year until now.

Gas export economics often favour rising markets, such as the 35 percent increase in TTF Q3 prices observed since the start of April, because an early purchase for export can be used to satisfy a later sell within the destination market. 

Market participants may well feel that the current volume of flow is also reflective of the short haul termination. Despite having a marginally lower cost of transport in June, the IUK pipeline heading towards Belgium is currently not exporting due to annual maintenance being performed on the transit. These will be completed by the start of gas day June 16.

For more information visit www.tca.be

14th June 2021