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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
The Spanish government decided to cap the price of natural gas paid by gas-fired power plants at €40.00/MWh in mid-June which has resulted in some unintended consequences according to ICIS.
- The cap will be in place until the end of May 2023 but from 1 January will rise incrementally by €5.00/MWh to reach €70.00/MWh in the final month of the regulation.
- The low gas price combined with falling hydro generation lifted gas demand, which doubled year on year over the summer months at a time when Europe was scrambling to reduce gas demand in response to the Russian supply crunch.
- Cogeneration gas fired-power plants which were more efficient and environmentally friendly but had been left out of the compensation scheme, had to ramp down. Cogeneration production fell from 15% in the immediate pre-cap period to 9% after the introduction of the cap.
- Spanish electricity producers also started to export electricity to the comparatively more expensive French market.
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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