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European Winter Cold Will Determine Gas Challenge: Shell CEO

NATURAL GAS

Shell CEO Wael Sawan sees Europe in a good place heading into this winter with Europe’s gas storage expected to surpass 90% full if we continue the current trend.

  • Renewable power generation continuing to grow, and gas-storage levels approaching historic highs have resulted in lower gas prices in the short term.
  • Soft demand from the Chinese industrial sector have also given gas market “a bit of a reprieve for now.”
  • A cold European winter will “determine whether we have challenges or not.” he added and sees medium-term tightness in the global LNG market.
  • TotalEnergies expects average LNG prices between 9$/mmbtu and 10$/mmbtu in Q3, but anticipates a rise to 15$/mmbtuu over winter due to Asian and European demand.
  • European gas in store is up at the top of the five year range at 84.25% full on 25 July according to GIE data compared to the five year average of 69.1%.

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