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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NATURAL GAS
LPG last year held an average cost advantage over natural gas of $21.4/GJ and $18/GJ respectively according to ICIS.
- Natural gas consumption at European refineries was down -26.3TWh in 2022 (-26% vs. 2021 levels) accounting for 7.8% of the total EU-27 gas savings last year (vs. 5-year average).
- The significantly drop in gas prices since August 2022 have seen the cost advantage switch in favour of consuming natural gas over Fuel Oil/LPG during H1 2023.
- Short-term optimisation by refiners on the improved economics of natural gas use could likely lead to an increased gas demand and a reduction in the emission intensity of their operations.
- The extent of any increase in gas demand and reduction in emissions from European refiners in H2 2023 will depend on the fuel switch potential and gas maintaining its cost advantage. Gas demand will also demand on whether crude throughput stays high despite the weak demand risks to refinery margins.
Source: ICIS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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