06.01.2016, 23:31
Dutch gas exports fall in December
OREANDA-NEWS. The Netherlands' net gas exports fell by more than a third in December as slower production limited gas available for sale. But the drop was partly driven by higher gross imports and mild weather in northwest Europe.
Net Dutch gas exports fell to 92.2mn m³/d in December from 150.5mn m³/d a year earlier. This was mostly the result of lower net high-calorie exports, which fell to just 7.4mn m³/d from 45.8mn m³/d.
Exports to the UK and Belgium dropped, while deliveries to the Tenp system at Bocholtz — much of which goes to Italy — also fell.
BBL flows were consistently lower than a year earlier after the government imposed a 16.5bn m³ January-June production cap on the giant Groningen swing field in February. Deliveries all but halted during the summer, although flows restarted in October.
The Netherlands has exported to the UK this winter — albeit less than a year earlier — despite prompt prices at the TTF hub at too small a premium to the UK NBP price to cover the UK's 1.84p/th commodity charge.
The drop in net exports was partly because of quicker high-calorie receipts at Oude Statenzijl, which rose to 28.4mn m³/d from 12.1mn m³/d. Russian gas typically arrives in the Netherlands at Oude Statenzijl — with most of it coming from the Gascade system — and flows were lower in December 2014, when Russian state-controlled Gazprom was delivering less than nominated to some European firms.
Slower Russian exports to Europe may have boosted demand across northwest Europe for Dutch gas last winter. But higher Russian deliveries to Europe this winter have limited demand for supply from the Netherlands, particularly with mild weather curbing demand across the region.
The quick Russian receipts last month combined with mild weather curbing demand to weigh on prompt prices relative to contracts delivering later in the winter. Prompt prices at a discount to near curve contracts offered an incentive to inject into storage, preserving stocks for the first quarter of 2016.
High-calorie storage sites connected to the Dutch grid recorded net gas injections of 5.4mn m³/d in December compared with withdrawals of 30.4mn m³/d a year earlier.
The decline of older Dutch fields also reduced the amount of gas available for sale compared with previous years.
Low-calorie Dutch exports also slipped in December, but by a smaller proportion than high-calorie exports. Low-calorie exports fell to 83.9mn m³/d from 104.4mn m³/d a year earlier. Flows to Belgium were stable, but deliveries to Germany fell to 55.2mn m³/d from 75.8mn m³/d.
A stricter production cap on Groningen reduced the amount of low-calorie gas available for sale compared with previous years. But low-calorie exports are often delivered under long-term contracts, and mild weather in Germany curbed the country's demand for imports.
Groningen output fell to around 80.8mn m³/d in December from 170.4mn m³/d a year earlier, assuming stable output from the small fields. The transition to a gas-year production cap from a calendar year limit, combined with TTF everyday prices at a discount to contracts delivering later in the winter, provided an incentive to preserve more output for January-March.
But strong withdrawals from the Netherlands' Norg storage facility partly offset the decrease in Groningen production, with stocks drawn down quickly despite suppressed heating demand because of mild weather in the Netherlands and Germany in December.
Net Dutch gas exports fell to 92.2mn m³/d in December from 150.5mn m³/d a year earlier. This was mostly the result of lower net high-calorie exports, which fell to just 7.4mn m³/d from 45.8mn m³/d.
Exports to the UK and Belgium dropped, while deliveries to the Tenp system at Bocholtz — much of which goes to Italy — also fell.
BBL flows were consistently lower than a year earlier after the government imposed a 16.5bn m³ January-June production cap on the giant Groningen swing field in February. Deliveries all but halted during the summer, although flows restarted in October.
The Netherlands has exported to the UK this winter — albeit less than a year earlier — despite prompt prices at the TTF hub at too small a premium to the UK NBP price to cover the UK's 1.84p/th commodity charge.
The drop in net exports was partly because of quicker high-calorie receipts at Oude Statenzijl, which rose to 28.4mn m³/d from 12.1mn m³/d. Russian gas typically arrives in the Netherlands at Oude Statenzijl — with most of it coming from the Gascade system — and flows were lower in December 2014, when Russian state-controlled Gazprom was delivering less than nominated to some European firms.
Slower Russian exports to Europe may have boosted demand across northwest Europe for Dutch gas last winter. But higher Russian deliveries to Europe this winter have limited demand for supply from the Netherlands, particularly with mild weather curbing demand across the region.
The quick Russian receipts last month combined with mild weather curbing demand to weigh on prompt prices relative to contracts delivering later in the winter. Prompt prices at a discount to near curve contracts offered an incentive to inject into storage, preserving stocks for the first quarter of 2016.
High-calorie storage sites connected to the Dutch grid recorded net gas injections of 5.4mn m³/d in December compared with withdrawals of 30.4mn m³/d a year earlier.
The decline of older Dutch fields also reduced the amount of gas available for sale compared with previous years.
Low-calorie Dutch exports also slipped in December, but by a smaller proportion than high-calorie exports. Low-calorie exports fell to 83.9mn m³/d from 104.4mn m³/d a year earlier. Flows to Belgium were stable, but deliveries to Germany fell to 55.2mn m³/d from 75.8mn m³/d.
A stricter production cap on Groningen reduced the amount of low-calorie gas available for sale compared with previous years. But low-calorie exports are often delivered under long-term contracts, and mild weather in Germany curbed the country's demand for imports.
Groningen output fell to around 80.8mn m³/d in December from 170.4mn m³/d a year earlier, assuming stable output from the small fields. The transition to a gas-year production cap from a calendar year limit, combined with TTF everyday prices at a discount to contracts delivering later in the winter, provided an incentive to preserve more output for January-March.
But strong withdrawals from the Netherlands' Norg storage facility partly offset the decrease in Groningen production, with stocks drawn down quickly despite suppressed heating demand because of mild weather in the Netherlands and Germany in December.
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