September 2017 has brought a real price rally in the futures market. In addition, it became clear that biomass at least for the tender system is a technology on the phase-out. Applications of blockchain appear more frequently, as TenneT, IBM and Sonnen demonstrate. While the renewable energy targets for 2020 seem to be more …
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.
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).
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.
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.
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.
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.