ACER Monitoring Shows Declining Gas Prices Due To Increased LNG Imports And Decreasing Demand

ACER monitors and reports annually on the EU (internal) markets of electricity and natural gas (in our so-called Market Monitoring Reports (MMRs)).

Today’s Key developments publication provides an initial assessment of key developments in European wholesale gas markets over the recent months.

What are the key findings?

• Wholesale gas prices reached record-high levels in 2022.
• Since the end of 2022, the demand-supply balance in the gas market has improved due to a combination of rising liquified natural gas (LNG) imports and a decrease in demand.
• This improved balance has ensured a reduction in gas prices, which are now approaching pre-crisis levels. However, supply is overall still tight, exposing prices to unexpected developments. China’s LNG demand remains an important factor for EU gas prices going forward.
• Gas trading activity has increased in recent weeks due to more favourable prices and reduced margin requirements.

Access:

• Key developments in EU gas wholesale markets – 2023 Market Monitoring Report