Europe LT Contracts Not Being Renewed: Cedigaz
Paris-based research institute Cedigaz has updated its database of long-term gas supply contracts by pipeline in Europe.
Releasing its conclusion November 13, it said the result "illustrates growing short-term supply availability and long-term demand uncertainty."
According to this update, more than 25bn m3/yr of such long-term contracts expired, or are due to expire, this year. Cedigaz says the largest of these, for a maximum of 10bn m3/yr, is a contract by Germany's RWE Trading for supply to Ukraine's state Naftogaz, signed in 2012; flows are from Poland into Ukraine.
All of that contrasts with just one new contract for 1bn m3/yr lasting ten years signed in 2017, signed between Gazprom and Croatian firm Prvo Plinarsko Drustvo.
|
Annual contract volume (bn m3/yr) |
Importer (left to right) | ||||||
| Exporter (below) | Czech Republic | Hungary | Latvia | Slovenia | Ukraine | United Kingdom | Total |
| Denmark | 0.5 | 0.5 | |||||
| Germany | 10 | 10 | |||||
| Norway | 2.8 | 4.5 | 7.3 | ||||
| Russia | 0.5 | 6.2 | unknown | 0.83 | 7.53 | ||
| Total | 3.3 | 6.2 | 0.83 | 10 | 5 | 25.33 |
European pipeline gas is not the only area of current supply abundance. Cedigaz last month published a study forecasting that the global LNG supply surplus would continue until 2023-24; consultancy Wood Mackenzie broadly shared that conclusion.
Mark Smedley