LNG

Gasunie, one of the main LNG importers in the Netherlands with global storage giant Vopak, said the company’s EnergyStock subsidiary has issued a call for “expressions of interest” in long-term flexibility Dutch gas storages services.

The Gasunie unit’s main facility is located in the north of the Netherlands and connected to the Dutch gas transmission network at the heart of the Dutch Title Transfer Facility (TTF) benchmark gas market.

“In this turbulent energy market, EnergyStock has experienced scarcity of gas storage services and a market demand for long-term contracts,” the company explained.

“In order to satisfy this demand and give market parties the opportunity to establish certainty in uncertain times, EnergyStock will offer long-term flexibility services for a duration of five to 10 years, with effect from Storage Year 2025,” the statement from Gasunie explained.

Non-binding phase

“As a first step, EnergyStock invites interested market parties to formulate a non-binding ‘Expression of Interest’ for long-term flexibility services,” said Gasunie.

“This process starts on July 2 and interested parties are asked to express their interest no later than 31 July 2024,” it added.

In addition to long-term services, EnergyStock stated that it would continue to offer short-term flexibility services, short lead time rights and interruptible services.

The EnergyStock natural gas is stored in six salt caverns at a depth between 1,000 metres to 1,500 metres and whose gas volume ranges from 5,000 megawatt to 10,000 MWh.

The technical lay-out consists of two tubings per cavern instead of one tubing that results in an exceptionally high injection and withdrawal rates.

Gas is injected into the caverns using electric compressors and is withdrawn using equipment for heating, pressure reduction and gas drying.

“Injection and withdrawal capacity is available 24/7 throughout the year,” said Gasunie.

The facility has high reliability with an efficient short period of yearly maintenance that is principally planned during summer shoulder months.

Supply balancing

“Gasunie aims to facilitate the continuous balancing of supply for its customers and demand of natural gas,” said Gasunie in its statement.

“They achieve this by offering fast-cycle gas storage services using their unique natural gas storage in the northern part of the Netherlands,” it added.

Gasunie’s network is one of the largest high-pressure pipeline networks in Europe, comprising over 17,000 kilometres (10,650 miles) of pipelines in the Netherlands and northern Germany.

The Dutch state-backed utility also has LNG import facility stakes in the Gate terminal in Rotterdam and the Eemshaven import hub in Groningen,

The utility is additionally involved in the German natural gas market and in developing the onshore LNG terminal in Brunsbüttel on the Elbe.

EnergyStock aims to guarantee a transparent process wherein parties have a level playing field.

“We decided to auction our short-term flexibility services for Storage Year 2025 in the fourth quarter of 2024,” said the company.

“Details of the auction will be shared prior to the auction. The capacity and working gas volume to be auctioned will depend on the progress made with long-term agreements,” it added.

The number of liquefied natural gas cargoes pointing at Asian import terminals and being delivered this week increased as prices also edged higher while European natural gas benchmark values declined as storage levels roseacross Europe.

European LNG and wholesale natural gas day-head andfutures prices declined over the past week as mid-Summer arrived and storage began to swing towards peak levels while cargo deliveries slowed to Chinese and European regasification terminals.

Intercontinental Exchange, the leading global provider of trading platforms for the whole energy complex from crude oil to LNG cargoes and European and Asian natural gas futures and options, has reported record open interest in ICE Midland crude contracts on the US Gulf Coast, also the centre of the US LNG industry.

European LNG and wholesale natural gas prices surged over the past week as a lack of confidence prevailed in energy markets over restrictive European policies while Asian LNG demand increased and futures prices from the US to India were strong through to the year-end.

European LNG and wholesale natural gas prices dropped by almost 5 percent over the past week while North Asian spot LNG cargo prices were firmer even as cargo volumes pointing at Japan began to decline amid high storage levels as is normal at this time of year in the East and West of the Northern Hemisphere.

Intercontinental Exchange Inc., the leading global provider of energy trading platforms, said that global futures and options markets reached record open interest of over 96 million contracts during May as market players in sectors such as oil, natural gas and LNG launched hedging operations amid volatile prices.

Global liquefied natural gas and spot and future wholesale pipeline gas prices lost some ground over the past week though the market remained volatile as shipping insecurity on Middle East routes was expected to last into 2025.

European liquefied natural gas and wholesale pipeline gas prices soared by over 16 percent on the week while stronger Asian spot cargo values and higher global gas futures prices signalled a return of volatility to a market harbouring doubts about the stability of supplies.

European liquefied natural gas and wholesale pipeline gas prices moved higher amid a German draw on storage while US Gulf Coast LNG futures rose on a positive demand outlook while Asian spot cargo values declined on the week.