Higher gas prices, projected to rise further, not impacting demand

Higher LNG and pipeline gas prices resulting from new market conditions have not impacted gas demand in the Greek market, a key driver being opportunities presented to electricity producers by the target model’s new trading markets.

Latest data has shown a significant price increase in futures contracts at central European hubs, compared to levels recorded just a few weeks ago.

This price rise is seen as somewhat of a paradox given the pandemic’s second wave, now in progress, and its wider impact on demand.

Officials believe the current upward price trajectory heralds an upcoming new round of higher gas prices following extremely low prices in recent times. They sunk to a low in spring.

In Greece, LNG prices are currently rising at a steeper rate compared to those for pipeline gas. Despite this ascent, demand has so far remained strong and no cancellations have been reported for LNG orders to the Revythoussa islet terminal just off Athens.

Pundits have attributed the absence of any LNG order cancellations to the need of electricity producers to be stocked up on gas quantities in readiness for grid entry and utilization of opportunities offered by the target model’s new balancing market.