ANALYSIS: Italian gas supply sources shift in Q2, Russia now dominates - PLATTS

London (Platts)--7 Apr 2017 909 am EDT/1309 GMTStuart Elliott, edited by Alisdair Bowles
Since the start of the second quarter, gas flow dynamics around Europe have shifted -- both by route, source and destination -- pointing to continued supply flexibility in the European gas market.

Italy is often a good gauge of whether supply contracts are competitive versus each other and versus the northwest European hubs at any particular time, with Russian gas seemingly the most attractive since the start of Q2.

Italian buyers have import contracts with Russia's Gazprom and Algeria's Sonatrach, but can also import gas from the northwest European hubs, giving them options when long-term contract prices diverge from hub prices.

Global gas demand growth down - IN CYPRUS / CYPRUS WEEKLY

18/06/2016
By Charles Ellinas

The International Energy Agency (IEA) released last week its annual Medium-Term Gas Market Report 2016 and it makes grim reading for gas exporters.

This was followed-up by BP’s 2016 Statistical Review of World Energy. When presenting it, BP’s Chief Economist said, “This is truly an age of plenty.” He went on further to say, “On the energy demand side what we are seeing is a gradual deceleration in the growth of global energy consumption”, contributing to an age of plenty.

These developments of course have a global impact on markets and prices, but also seriously affect East Med gas developments. This is the subject of this article.

Global LNG market and Europe - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 13/03/2016

LNG

The global liquefied natural gas (LNG) market is going through difficult times due to the glut of LNG coming into the market and the slow increase in demand. If it sounds similar to the oil story it is, because there is a linkage and there are similarities.

Some say that the LNG business will not make money for a long time to come. When many of the projects coming now on-stream were sanctioned, gas in Japan was above $16 per million British thermal units (mmBTU) and in Europe it was above $13/mmBTU. Now prices in Europe have gone down to $4/mmBTU. This has profound implications on gas trading globally and in Europe and plans to develop and export Eastern Mediterranean gas.

Egypt’s Natural Gas Crisis | Carnegie Endowment for International Peace

BY BRENDAN MEIGHAN 

Egypt’s temporary relief from its ongoing gas crisis is the result of a lull in demand, not an improvement in industry outlook. Thursday, January 21, 2016

One of the most pressing crises facing the Egyptian economy has been the severe shortage of natural gas. The crisis itself—which involves supply cuts to factories and frequent electrical outages—has received copious coverage in the domestic and international press and has tested the patience of the Egyptian people and the business community. However, during the first week of November, officials at the Egyptian Natural Gas Holding Company (EGAS) announced that Egyptian heavy industry was now being supplied with all of its needed natural gas and other fuels. Officials from a number of companies and trade organizations confirmed this on December 2. There has also been an absence of reports of power cuts in major residential areas. Unfortunately for Egypt, this may simply be the result of a lull in demand due to moderate weather and slower production from heavy industry, not a permanent end to the shortages.