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LNG Demand in Spain Could Rise with Low Hydro Reservoirs

LNG

LNG demand in Spain could rise in the coming months as the country battles with drought for the second year in a row.

  • Prolonged drought is impacting hydroelectric power generation and hotter temperatures are boosting cooling needs according to Energy Intelligence sources.
  • The reduction in capacity comes just as the high-demand summer season arrives.
  • Spain's southern and north eastern regions have been hardest hit with hydro reservoirs in most cases below 40%. Certain parts of Andalusia reserves are below 25%, according to ecological transition ministry.
  • Bearish gas and LNG prices are a risk to the ability to attract spot cargoes to meet rising consumption in Southwest Europe.

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