OIES -Quarterly Gas Review - Analysis of Prices and Recent Events [GGP]
Thanks to Argus Media, we updated our “LNG tightness” metric that measures the spread between the US Gulf Coast LNG FOB and the Henry Hub price. It is interesting to keep track of this ‘LNG tightness’ in a fast changing energy world.
In Europe, the Brexit unknowns are increasing, and the gas markets have still not been properly addressed, leaving little time before March 2019 to find a commonly agreed solution not only for the short but also the long-term. We are now seeing industry lobby groups like Eurogas and Eurelectric interfering in those Brexit energy issues, making them less likely to be solved.
This is why more and more planning is going into the event of a no-deal Brexit scenario, like the introduction of a UK Carbon Emissions Tax (16 £/t) on top of the existing UK Carbon Price Support (18 £/t) and setting the total carbon price in the UK at 34 £/t to offset the impact of a UK withdrawal from the EU Emissions Trading System (EU ETS). This new Carbon Emission Tax is supposed to mirror the EU ETS situation as long as CO2 prices stay around 18 €/t in Europe.
READ: OIES - Quarterly Gas Review - Quarterly Focus: A very special European gas year ahead
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