Energy BrainBlog

Blog by Energy Brainpool GmbH & Co. KG

Tag: Commodity markets (page 1 of 2)

Energy market review – August 2017

August 2017 was characterised by the second tender for wind-onshore, the subsequent discussions about citizen energy companies and the significantly decreased price level. Despite the summer break, electricity prices have been increasing at the long end of the curve.


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Tutorial gas market 6: Natural gas transportation and storage

Damen-Shiprepair-Brest-Scores-Second-LNG-Repair-Commission (LNG Worldnews)

Natural gas can either be transported grid-bound via pipelines or liquefied as LNG. In order to increase the energy density, the gas is transported through the pipelines under high pressure (around 80 bar).


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3rd weekend of August: negative prices at the spot market

On Saturday, August 19th 2017, as well as on Sunday, August 20th 2017, a high production of variable renewable energies hit a low demand. The primary causes of this are the weekend and the holiday period. On both days, negative prices occurred at noon over a maximum period of five hours, so that the production was not affected by § 51 EEG 2017.


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Tutorial gas market 5: Price indices

The linkage to the oil price is achieved by not including a fixed price in the gas contracts but a formula by which the gas price is calculated using the oil price.


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Tutorial gas market 4: Specificities of natural gas procurement contracts

In the procurement of gas some singularities have developed, which distinguish the gas market from other commodity markets. Import companies, for example, sometimes have very long-term contracts with gas producers (up to 20 years), a linkage to the oil price and the so called take-or-pay volumes or flexibilities with limits. This chapter aims to familiarize you with the terminology, to understand their meaning and to assess the consequences for the energy industry.


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Tutorial gas market 3: Influence of the LNG market

Damen-Shiprepair-Brest-Scores-Second-LNG-Repair-Commission (LNG Worldnews)

For a long time natural gas has exclusively been a grid-bound energy carrier. In consequence, markets for natural were not globalized, but there were several submarkets (see Tutorial 1) which supplied themselves. Furthermore, the price level in the various markets varied as no arbitrage between the markets was possible.


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Tutorial gas market 2: Determinants of the natural gas demand

Irsching_Aussenansicht (blog.zeit)

After giving you an overview of where natural gas is produced and the regions, which are most important for the European natural gas market, the following will provide you an overview of the gas consumption and on which factors it depends on.


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Tutorial gas market 1: Geopolitical framework conditions of the natural gas markets

Gas transport facility Chongqing (China Daily)

Natural Gas is currently the third most important primary energy carrier in the world (after oil and coal). The main advantages of natural gas in comparison to coal or oil are the high efficiency levels that can be achieved when generating electricity from natural gas. As with oil, the global reserves of natural gas are concentrated in a few countries around the world.


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