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Natural gas prices, news & market analysis | Argus Media

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In two years, Geo&#x27;s planned 294,600 m³/d of installed capacity would give it largest share of Brazilian production at almost 16pc, according to data from hydrocarbons regulator ANP. Geo owns a 27,100 m³/d biomethane plant along with Cocal and a 130,400 m³/d plant with Raizen, two sugar and ethanol producers in Sao Paulo state. In addition, it is waiting for authorization to operate two already-built plants, adding about 50,200 m³/d to its portfolio. Geo plans to build another three production units by January 2026 with about 80,900 m³/d of capacity, including partnerships with both waste management and sugar and ethanol companies, such as Crivellaro Ambiental and Coopcana. Geo also partnered with sugarcane ethanol producer Copersucar to produce sustainable aviation fuel (SAF) from biomethane. Urca — currently Brazil&#x27;s largest biomethane producer — will lose market share as competing plants come on line in the next few years. It owns two plants in Sao Paulo and Rio de Janeiro with a combined total production capacity of 234,000 m³/d, enough for more than 38pc market share. That would fall to 12pc by the end of 2026 if plants awaiting ANP authorization start operations. Biomethane company MDC would also lose some of its 31pc market share, spread across three plants with different partners. MDC&#x27;s 193,200 m³/d of combined capacity would represent a little over 10pc of total market share by the end of 2026. Meanwhile, Brazilian natural gas trading company Edge also is in line to become one of the Brazil&#x27;s biggest biomethane producers. It holds a majority stake of the pending 225,800 m³/d Biometano Verde Paulinia plant, which would tie it with Urca at 12pc market share at the end of 2026. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.</p></div><span class="qa-combinedfeed-item-cta cta d-none d-lg-inline-flex"></span></a></div><div class="col-12 col-lg-6"><div class="News_secondaryGroup__CVF5i"><a class="qa-combinedfeed-secondary-item News_link__TcfaC News_secondary__4Pe3A white" href="/es/news-and-insights/latest-market-news/2627837-eu-s-gas-fired-power-output-up-on-still-cloudy-weather"><div class="News_secondaryOuter__68Cw0 d-none d-lg-flex"><div class="News_secondaryInner__T663Z"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ h5">Latest natural gas news</div><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">EU&#x27;s gas-fired power output up on still, cloudy weather</h3></div><hr class="News_hr__BZset"/><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">12/11/24</div></div><div class="News_secondaryOuter__68Cw0 d-flex d-lg-none"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ News_category__qm0Jk h5">Latest natural gas news</div><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">12/11/24</div><hr class="News_hr__BZset"/><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">EU&#x27;s gas-fired power output up on still, cloudy weather</h3><p class="qa-combinedfeed-item-summary News_summary__eRMnt">London, 12 November (Argus) — European gas-fired power generation has been strong this month on the back of still, cloudy weather, bolstering gas consumption across the bloc. Gas-fired generation across the EU stepped up sharply on 4 November and averaged 62GW on 4-11 November, according to data from research institute Fraunhofer ISE, as both wind and solar generation have been muted. Gas-fired generation averaged 32GW earlier this month and 34GW in October. In Germany — the country with the greatest installed wind capacity in Europe — gas-fired generation stepped up to 10.8GW on 4-11 November, from 4.8GW earlier in the month and 4.8GW in October. Argus -estimated German power-sector gas demand accordingly rose to 671 GWh/d from 287 GWh/d and 293 GWh/d across the same three periods. Coal- and lignite-fired generation have also increased. At the same time, combined German onshore and offshore wind generation dropped to 4.9GW from 13.9GW on 1 October-3 November, according to data from European system operators&#x27; association Entso-E. And solar generation retreated to 1.9GW from 4.8GW across the same time frames. But German combined wind generation was projected on 7 November to grow in the coming days, hitting a high in the next two weeks of 34GW on 18 November, according to data from trade analytics firm Kpler. The UK has limited power-generation sources relative to other European countries, and is more reliant on gas-fired generation to meet power demand when wind and solar are low. UK power-sector gas demand jumped to 73.3mn m³/d on 4-8 November, before dipping to 48.1mn m³/d in the past three days. UK power-sector gas demand was at its highest on 4 October for any day since 18 January. Cloudy weather in the UK that had weighed on solar generation has eased in recent days. UK solar generation rose above 1GW on 11 November, after having averaged 248GW earlier in the month, according to BMRS data. And UK wind generation was forecast by Kpler to rise steadily to 11.5GW on 16 November before dipping slightly, having averaged 3.9GW on 1-10 November but climbing to 9.8GW on 11 November. Impact on gas The still and cloudy weather conditions have buoyed gas consumption at a time of muted LNG deliveries to Europe , bolstering the call on storage, which may have supported prices in recent days. The Dutch TTF front-month market — the European benchmark — closed at €43.91 on 11 November, up from €42.08/MWh at the previous close and €38.835/MWh at the start of the month. Market participants attributed the rise to a faster-than-expected stockdraw. There have been consistent net withdrawals from EU storage since 29 October, averaging 1.7 TWh/d since that time, GIE transparency platform data show. Withdrawals were particularly brisk on 5-8 November, averaging 3.5 TWh/d. This has drawn stocks down to 1.07PWh, equating to 93.4pc of capacity, below the 1.13TWh stored a year earlier, when sites were at 99.4pc of capacity. Last year the stockdraw began in earnest on 13 November. Lower stocks than a year earlier may have contributed to the TTF summer 2025 market closing above the following winter in recent weeks, which if maintained may provide no incentive for firms to inject next summer. By Oscar Mahony Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.</p></div></a><a class="qa-combinedfeed-secondary-item News_link__TcfaC News_secondary__4Pe3A white" href="/es/news-and-insights/latest-market-news/2627508-market-finds-some-rng-prices-above-gas-parity-study"><div class="News_secondaryOuter__68Cw0 d-none d-lg-flex"><div class="News_secondaryInner__T663Z"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ h5">Latest natural gas news</div><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">Market finds some RNG prices above gas parity: Study</h3></div><hr class="News_hr__BZset"/><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">11/11/24</div></div><div class="News_secondaryOuter__68Cw0 d-flex d-lg-none"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ News_category__qm0Jk h5">Latest natural gas news</div><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">11/11/24</div><hr class="News_hr__BZset"/><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">Market finds some RNG prices above gas parity: Study</h3><p class="qa-combinedfeed-item-summary News_summary__eRMnt">Sao Paulo, 11 November (Argus) — Market participants are finding some biomethane prices ranging from around parity to natural gas to much higher levels, particularly when used as a substitute for diesel. A recent study on biomethane potential in Sao Paulo commissioned by the state&#x27;s industry federation Fiesp lists four different price methodologies — including Argus &#x27; — that result in a range of prices. Argus &#x27; biomethane parity price with natural gas delivered in pipelines ranged from R2.47-2.80/m³ ($0.43-0.48/m³) as of 7 November, while the study said the market&#x27;s perception for prices in 2023 and 2024 can range from R2.5-4/m³. The study does not specify where the biomethane would be delivered. The higher end of the price spectrum tends to be related to the use of biomethane as an alternative to diesel fuel in trucks and buses. The study shows that measures linked to replacing diesel with gas in transport can boost distributed demand for biomethane in the territory and make it even more competitive for the industry. The study also indicates that plants in Sao Paulo could supply up to 6.4mn m³/d, up from 400,000 m³/d. From these 181 potential plants, 84pc would use feedstock from the ethanol and sugar sector and 16pc from landfills. But the research shows a mismatch between the potential supply and demand, with production concentrated in the north and the main consumer centers in the southeast. This creates a logistical challenge for the sector&#x27;s development in the state. Other challenges were also listed in the study, such as competitiveness between biomethane and other power sources; the establishment of certificates to value the environmental attributes of biomethane on a large scale; the regulations of multiple suppliers; and a still-in-development consumer market for the molecule. The research concludes that there is no silver bullet to solve these obstacles and suggests coordinated measures targeting supply, logistics and demand. The government&#x27;s role is also fundamental to define appropriate incentives and well-articulated public policies aiming at mitigating these barriers and developing long-term goals, the research said. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.</p></div></a><a class="qa-combinedfeed-secondary-item News_link__TcfaC News_secondary__4Pe3A white" href="/es/news-and-insights/latest-market-news/2625862-europe-gas-market-shows-muted-reaction-to-us-trump-win"><div class="News_secondaryOuter__68Cw0 d-none d-lg-flex"><div class="News_secondaryInner__T663Z"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ h5">Latest natural gas news</div><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">Europe gas market shows muted reaction to US Trump win</h3></div><hr class="News_hr__BZset"/><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">06/11/24</div></div><div class="News_secondaryOuter__68Cw0 d-flex d-lg-none"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ News_category__qm0Jk h5">Latest natural gas news</div><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">06/11/24</div><hr class="News_hr__BZset"/><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">Europe gas market shows muted reaction to US Trump win</h3><p class="qa-combinedfeed-item-summary News_summary__eRMnt">London, 6 November (Argus) — The European gas market showed only a limited downward reaction this morning to the US election result, and while some market participants expect a second Donald Trump presidency to ease geopolitical tensions, others see the potential for destabilising effects in the medium term. While vote counting was still ongoing at the time of publication and vice-president Kamala Harris has yet to concede defeat, the Associated Press and major US television networks have concluded that Trump secured enough votes in the Electoral College to win the presidency. European gas prices fell during morning trading, despite the US dollar strengthening by about two basis points against the euro. European gas prices typically move higher in euro terms when the US dollar strengthens to offset the higher cost of dollar-denominated LNG supply. Some market participants attributed the small price fall during morning trading to the expectation that a second Trump administration would seek de-escalation on several geopolitical fronts — such as in Ukraine and the Middle East — which, they say, had supported gas prices in recent weeks. But European gas prices reversed their limited gains by the 16:30 GMT market close. And the European gas price reaction was notably muted relative to the considerable volatility of less than a week ago when a media report had raised the prospect of an imminent deal between European buyers and Azerbaijan for gas transit through Ukraine. These European buyers later denied that a contract would soon be signed . Few market participants foresee a material effect on the gas market stemming from the US election result. &quot;The impact is too vague to really price in,&quot; a trading firm said. &quot;Given the tight global supply-demand balance, any setback will be short-lived,&quot; another market participant said. The result may fuel speculation that the war between Russia and Ukraine could come to an end sooner, but with the new president set to take office in late January, the change in presidency will have no effect on the possibility of reaching a deal that would allow Russian gas flows through Ukraine to continue beyond the expiry of the transit contract and interconnection agreements between the two countries at the end of this year. If a normalisation of relations with Russia leads a Trump administration to unblock sanctions preventing the use of the Novatek-led 19.8mn t/yr Arctic LNG 2 export terminal, this might bring more LNG supply to the market in 2025 than previously envisaged. Looking further ahead, Trump&#x27;s pledge to reverse incumbent president Joe Biden administration&#x27;s LNG licensing pause and speed up the approval of new liquefaction projects may have boosted expectations of global LNG supply towards the end of this decade. But other market participants expressed concern about a potential threat to US LNG exports to Europe in the medium term if the new administration opts not to co-operate with the EU on establishing a framework for monitoring, reporting and verifying methane emissions, which may hamper US-EU LNG trade flows once the EU methane emissions regulation is fully implemented. This, coupled with a &quot;drill, baby, drill&quot; policy in the US domestic market, may lead to a deeper gulf between the two markets, some said. Trump&#x27;s pledge to impose tariffs on imports into the US, particularly against China, may trigger the risk of retaliation that could affect LNG flows from existing facilities — as was the case in 2019, when deliveries of US LNG to China fell to zero as a result of the trade war between the two countries, before rebounding sharply in 2021 after the two countries agreed on a preliminary trade deal. Only one Chinese buyer had US offtake at the time, but many more subsequently signed on for US LNG, totalling about 22mn t/yr from existing and planned liquefaction projects. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.</p></div></a><a class="qa-combinedfeed-secondary-item News_link__TcfaC News_secondary__4Pe3A white" href="/es/news-and-insights/latest-market-news/2625744-q-a-french-state-auction-for-biomethane-rggos"><div class="News_secondaryOuter__68Cw0 d-none d-lg-flex"><div class="News_secondaryInner__T663Z"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ h5">Latest natural gas news</div><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">Q&amp;A: French state auction for biomethane RGGOs</h3></div><hr class="News_hr__BZset"/><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">06/11/24</div></div><div class="News_secondaryOuter__68Cw0 d-flex d-lg-none"><div class="qa-combinedfeed-item-eyebrow News_meta__Gc4kJ News_category__qm0Jk h5">Latest natural gas news</div><div class="qa-combinedfeed-item-date News_meta__Gc4kJ News_date___zoLz h5">06/11/24</div><hr class="News_hr__BZset"/><h3 class="qa-combinedfeed-item-title News_headline__JsnZr">Q&amp;A: French state auction for biomethane RGGOs</h3><p class="qa-combinedfeed-item-summary News_summary__eRMnt">London, 6 November (Argus) — France&#x27;s first auction for state-owned biomethane renewable gas guarantees of origin (RGGOs) is due to take place on 4 December. It will be run by European Energy Exchange (EEX), which also manages the French biogas registry. Argus spoke to Aude Filippi, director of business development gas and sustainability markets at EEX, about biomethane RGGOs in France and the new auctions. Edited highlights follow: How are RGGOs currently traded in France? All RGGOs for biomethane injected into the French gas grid are currently exchanged via the over-the-counter (OTC) market, and the transfer of ownership is done via the French biogas registry. The RGGOs are tradeable for 12 months and usable for 18 months, and are issued in monthly intervals. The market has been growing quite significantly. Between January and September 2024, 8.5TWh of RGGOs were issued and 7.2TWh cancelled, while in 2023 there were 9.6TWh issued. Almost all of the issued RGGOs are cancelled, with very few expiring after 18 months. Why are the biomethane RGGO auctions being launched now? The French state owns all the RGGOs from biomethane produced from subsidised plants where the contract was signed after 9 November 2020, and now the French state wants to sell them. Even though the contracts were signed in 2020, it takes time to put biomethane into production, so very few of the RGGOs have expired so far. But the volume being produced is growing so it is important that we now have the auctions. What size volumes are you expecting to be in the new biomethane GOO auctions? We expect over 80,000MWh in the first upcoming auction, with volumes likely to increase in the following sessions. What buyers are you expecting to participate in the auctions? Essentially it will be the members of the French biogas registry that we have connected today. And some members connected to the French power GOO auctions at EEX might participate, so we expect that it will be a similar target group, but for gas. Will buyers be able to export the biomethane GOOs for use in other countries? Today we are not yet connected to a hub for the international trade of RGGOs. At the moment, we are working with the hubs to get connected. Why do the auctions have a mechanism for certain buyers to reserve volumes in the auction? The idea is that the operator of a production device will have the ability to buy the RGGOs produced from this particular device from the French state. They are then committing for one year at least to buy these RGGOs at the auction price plus a 30pc premium. By Emma Tribe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . 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point.","ThumbnailImageUrl":"/-/media/project/argusmedia/mainsite/images/header-images/gas-and-power/header-desktop-natural-gas-01.jpg?rev=-1\u0026la=es\u0026hash=DBB28922F07598F16713844C3284C0E7","SearchResultItemUrl":"/es/methodology/key-commodity-prices/argus-point-dechange-de-gaz-peg","PublishDate":"2024-10-30T10:57:37Z","CreatedDate":"2024-09-20T00:00:00Z","Tags":["English","Natural Gas","Europe","Gas \u0026 Power"],"ItemId":"d53acdcf-41c4-4428-abb8-28fd939e0d6b","Title":"Argus Point d’Echange de Gaz (Peg)","Type":"KeyPrices"},{"ExternalLink":null,"Description":"Argus produces prompt and forward gas price assessments for Germany’s new virtual trading point (VTP) operated by Trading Hub Europe (THE).","ThumbnailImageUrl":"/-/media/project/argusmedia/mainsite/images/header-images/gas-and-power/header-desktop-natural-gas-01.jpg?rev=-1\u0026la=es\u0026hash=DBB28922F07598F16713844C3284C0E7","SearchResultItemUrl":"/es/methodology/key-commodity-prices/argus-germany-vtp-trading-hub-europe","PublishDate":"2024-10-30T10:54:33Z","CreatedDate":"2024-09-20T00:00:00Z","Tags":["English","Natural Gas","Europe","Gas \u0026 Power"],"ItemId":"46e413d8-6cde-4b5b-8fcb-a4bf91b1a916","Title":"Argus Germany VTP (Trading Hub Europe)","Type":"KeyPrices"},{"ExternalLink":null,"Description":"Argus assesses the price of contracts trading on Austria’s Virtual Trading Point (VTP). Our gas price assessments are trusted and used by a wide range of customers throughout Europe as benchmarks in supply contracts, risk management processes, and downstream and infrastructure pricing.","ThumbnailImageUrl":"/-/media/project/argusmedia/mainsite/images/header-images/gas-and-power/header-desktop-natural-gas-01.jpg?rev=-1\u0026la=es\u0026hash=DBB28922F07598F16713844C3284C0E7","SearchResultItemUrl":"/es/methodology/key-commodity-prices/argus-austria-vtp","PublishDate":"2024-10-30T10:46:59Z","CreatedDate":"2024-09-20T00:00:00Z","Tags":["English","Natural Gas","Europe","Gas \u0026 Power"],"ItemId":"46468b81-a161-409e-8c29-47ee33f7cbc0","Title":"Argus Austria VTP","Type":"KeyPrices"}]},"guid":"abe5ec72-51bf-4a3a-9b0b-46f2cb5e408b"},"5d83d1d0-d3d6-4f02-aad7-994fd1d80725":{"data":[{"Title":"Global LNG Winter and European Natural Gas Winter Previews - 2024","Description":"Gain in-depth understanding of how the natural gas and LNG markets will shape as we approach the end of 2024. Download our independent analysis and critical data for natural gas and LNG markets now.","Category":"WhitePaper","CreatedDate":"2024-10-18T11:50:00Z","ImageUrl":"/-/media/project/argusmedia/mainsite/images/14-generic-hero-banners/herobanner_1600x530_generic-c.jpg?rev=2cf023b4e0484c1bb091b9f72dbf7771\u0026la=es\u0026hash=E84D69B97C84401E3922480E9B6B216C","ExternalLink":null,"ItemUrl":"/es/news-and-insights/market-insight-papers/global-lng-winter-and-european-natural-gas-winter-previews-2024"},{"Title":"Towards a Global Gas Market?","Description":"Download our latest Natural Gas insight paper, which compiles opinions voiced at Gastech 2024.","Category":"WhitePaper","CreatedDate":"2024-10-16T12:52:00Z","ImageUrl":"/-/media/project/argusmedia/mainsite/images/14-generic-hero-banners/herobanner_1600x530_generic-c.jpg?rev=2cf023b4e0484c1bb091b9f72dbf7771\u0026la=es\u0026hash=E84D69B97C84401E3922480E9B6B216C","ExternalLink":null,"ItemUrl":"/es/news-and-insights/market-insight-papers/towards-a-global-gas-market"},{"Title":"European Natural Gas Winter 2024 Preview","Description":"Download the Argus European Natural Gas Winter 2024 Preview to gain a comprehensive outlook of the European gas market as we approach the tail-end of 2024.","Category":"WhitePaper","CreatedDate":"2024-09-19T11:37:00Z","ImageUrl":"/-/media/project/argusmedia/mainsite/images/14-generic-hero-banners/herobanner_1600x530_generic-c.jpg?rev=2cf023b4e0484c1bb091b9f72dbf7771\u0026la=es\u0026hash=E84D69B97C84401E3922480E9B6B216C","ExternalLink":null,"ItemUrl":"/es/news-and-insights/market-insight-papers/european-natural-gas-winter-2024-preview"},{"Title":"Falando de Mercado: O preço do biometano no Brasil 2024","Description":null,"Category":"Podcast","CreatedDate":"2024-03-22T00:00:00Z","ImageUrl":"/-/media/project/argusmedia/mainsite/english/images/news-and-insights/market-insight-papers/generic-gradient-hero-banner_1600x530px.jpg?rev=-1\u0026la=es\u0026hash=1CA3793AD3FB9AA96772A07A77C3B731","ExternalLink":null,"ItemUrl":"/es/news-and-insights/energy-and-commodity-podcasts/falando-de-mercado-o-preco-do-biometano-no-brasil-mar-2024"}]},"b8c35964-4f91-4a70-9c65-b0cee88b3c9a":{"data":[{"totalHitCount":1804,"hitCount":5,"items":[{"type":"Analysis","datePublished":"2024-11-18T18:00:00Z","headline":"Geo seeks Brazil RNG market throne by 2026","summary":"Sao Paulo, 18 November (Argus) — Brazilian biogas company Geo bio gas\u0026carbon is teaming up with feedstock providers in an attempt to become Brazil's largest biomethane producer by the end of 2026. In two years, Geo's planned 294,600 m³/d of installed capacity would give it largest share of Brazilian production at almost 16pc, according to data from hydrocarbons regulator ANP. Geo owns a 27,100 m³/d biomethane plant along with Cocal and a 130,400 m³/d plant with Raizen, two sugar and ethanol producers in Sao Paulo state. In addition, it is waiting for authorization to operate two already-built plants, adding about 50,200 m³/d to its portfolio. Geo plans to build another three production units by January 2026 with about 80,900 m³/d of capacity, including partnerships with both waste management and sugar and ethanol companies, such as Crivellaro Ambiental and Coopcana. Geo also partnered with sugarcane ethanol producer Copersucar to produce sustainable aviation fuel (SAF) from biomethane. Urca — currently Brazil's largest biomethane producer — will lose market share as competing plants come on line in the next few years. It owns two plants in Sao Paulo and Rio de Janeiro with a combined total production capacity of 234,000 m³/d, enough for more than 38pc market share. That would fall to 12pc by the end of 2026 if plants awaiting ANP authorization start operations. Biomethane company MDC would also lose some of its 31pc market share, spread across three plants with different partners. MDC's 193,200 m³/d of combined capacity would represent a little over 10pc of total market share by the end of 2026. Meanwhile, Brazilian natural gas trading company Edge also is in line to become one of the Brazil's biggest biomethane producers. It holds a majority stake of the pending 225,800 m³/d Biometano Verde Paulinia plant, which would tie it with Urca at 12pc market share at the end of 2026. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.","links":[{"rel":"article","href":"https://api.argusmedia.com/articles/2629948"}],"tags":null,"taxonomy":null,"id":2629948,"language":"en-GB","body":null},{"type":"News","datePublished":"2024-11-12T17:10:50Z","headline":"EU's gas-fired power output up on still, cloudy weather","summary":"London, 12 November (Argus) — European gas-fired power generation has been strong this month on the back of still, cloudy weather, bolstering gas consumption across the bloc. Gas-fired generation across the EU stepped up sharply on 4 November and averaged 62GW on 4-11 November, according to data from research institute Fraunhofer ISE, as both wind and solar generation have been muted. Gas-fired generation averaged 32GW earlier this month and 34GW in October. In Germany — the country with the greatest installed wind capacity in Europe — gas-fired generation stepped up to 10.8GW on 4-11 November, from 4.8GW earlier in the month and 4.8GW in October. Argus -estimated German power-sector gas demand accordingly rose to 671 GWh/d from 287 GWh/d and 293 GWh/d across the same three periods. Coal- and lignite-fired generation have also increased. At the same time, combined German onshore and offshore wind generation dropped to 4.9GW from 13.9GW on 1 October-3 November, according to data from European system operators' association Entso-E. And solar generation retreated to 1.9GW from 4.8GW across the same time frames. But German combined wind generation was projected on 7 November to grow in the coming days, hitting a high in the next two weeks of 34GW on 18 November, according to data from trade analytics firm Kpler. The UK has limited power-generation sources relative to other European countries, and is more reliant on gas-fired generation to meet power demand when wind and solar are low. UK power-sector gas demand jumped to 73.3mn m³/d on 4-8 November, before dipping to 48.1mn m³/d in the past three days. UK power-sector gas demand was at its highest on 4 October for any day since 18 January. Cloudy weather in the UK that had weighed on solar generation has eased in recent days. UK solar generation rose above 1GW on 11 November, after having averaged 248GW earlier in the month, according to BMRS data. And UK wind generation was forecast by Kpler to rise steadily to 11.5GW on 16 November before dipping slightly, having averaged 3.9GW on 1-10 November but climbing to 9.8GW on 11 November. Impact on gas The still and cloudy weather conditions have buoyed gas consumption at a time of muted LNG deliveries to Europe , bolstering the call on storage, which may have supported prices in recent days. The Dutch TTF front-month market — the European benchmark — closed at €43.91 on 11 November, up from €42.08/MWh at the previous close and €38.835/MWh at the start of the month. Market participants attributed the rise to a faster-than-expected stockdraw. There have been consistent net withdrawals from EU storage since 29 October, averaging 1.7 TWh/d since that time, GIE transparency platform data show. Withdrawals were particularly brisk on 5-8 November, averaging 3.5 TWh/d. This has drawn stocks down to 1.07PWh, equating to 93.4pc of capacity, below the 1.13TWh stored a year earlier, when sites were at 99.4pc of capacity. Last year the stockdraw began in earnest on 13 November. Lower stocks than a year earlier may have contributed to the TTF summer 2025 market closing above the following winter in recent weeks, which if maintained may provide no incentive for firms to inject next summer. By Oscar Mahony Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.","links":[{"rel":"article","href":"https://api.argusmedia.com/articles/2627837"}],"tags":null,"taxonomy":null,"id":2627837,"language":"en-GB","body":null},{"type":"Analysis","datePublished":"2024-11-11T18:00:00Z","headline":"Market finds some RNG prices above gas parity: Study","summary":"Sao Paulo, 11 November (Argus) — Market participants are finding some biomethane prices ranging from around parity to natural gas to much higher levels, particularly when used as a substitute for diesel. A recent study on biomethane potential in Sao Paulo commissioned by the state's industry federation Fiesp lists four different price methodologies — including Argus ' — that result in a range of prices. Argus ' biomethane parity price with natural gas delivered in pipelines ranged from R2.47-2.80/m³ ($0.43-0.48/m³) as of 7 November, while the study said the market's perception for prices in 2023 and 2024 can range from R2.5-4/m³. The study does not specify where the biomethane would be delivered. The higher end of the price spectrum tends to be related to the use of biomethane as an alternative to diesel fuel in trucks and buses. The study shows that measures linked to replacing diesel with gas in transport can boost distributed demand for biomethane in the territory and make it even more competitive for the industry. The study also indicates that plants in Sao Paulo could supply up to 6.4mn m³/d, up from 400,000 m³/d. From these 181 potential plants, 84pc would use feedstock from the ethanol and sugar sector and 16pc from landfills. But the research shows a mismatch between the potential supply and demand, with production concentrated in the north and the main consumer centers in the southeast. This creates a logistical challenge for the sector's development in the state. Other challenges were also listed in the study, such as competitiveness between biomethane and other power sources; the establishment of certificates to value the environmental attributes of biomethane on a large scale; the regulations of multiple suppliers; and a still-in-development consumer market for the molecule. The research concludes that there is no silver bullet to solve these obstacles and suggests coordinated measures targeting supply, logistics and demand. The government's role is also fundamental to define appropriate incentives and well-articulated public policies aiming at mitigating these barriers and developing long-term goals, the research said. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.","links":[{"rel":"article","href":"https://api.argusmedia.com/articles/2627508"}],"tags":null,"taxonomy":null,"id":2627508,"language":"en-GB","body":null},{"type":"Analysis","datePublished":"2024-11-06T17:27:34Z","headline":"Europe gas market shows muted reaction to US Trump win","summary":"London, 6 November (Argus) — The European gas market showed only a limited downward reaction this morning to the US election result, and while some market participants expect a second Donald Trump presidency to ease geopolitical tensions, others see the potential for destabilising effects in the medium term. While vote counting was still ongoing at the time of publication and vice-president Kamala Harris has yet to concede defeat, the Associated Press and major US television networks have concluded that Trump secured enough votes in the Electoral College to win the presidency. European gas prices fell during morning trading, despite the US dollar strengthening by about two basis points against the euro. European gas prices typically move higher in euro terms when the US dollar strengthens to offset the higher cost of dollar-denominated LNG supply. Some market participants attributed the small price fall during morning trading to the expectation that a second Trump administration would seek de-escalation on several geopolitical fronts — such as in Ukraine and the Middle East — which, they say, had supported gas prices in recent weeks. But European gas prices reversed their limited gains by the 16:30 GMT market close. And the European gas price reaction was notably muted relative to the considerable volatility of less than a week ago when a media report had raised the prospect of an imminent deal between European buyers and Azerbaijan for gas transit through Ukraine. These European buyers later denied that a contract would soon be signed . Few market participants foresee a material effect on the gas market stemming from the US election result. \"The impact is too vague to really price in,\" a trading firm said. \"Given the tight global supply-demand balance, any setback will be short-lived,\" another market participant said. The result may fuel speculation that the war between Russia and Ukraine could come to an end sooner, but with the new president set to take office in late January, the change in presidency will have no effect on the possibility of reaching a deal that would allow Russian gas flows through Ukraine to continue beyond the expiry of the transit contract and interconnection agreements between the two countries at the end of this year. If a normalisation of relations with Russia leads a Trump administration to unblock sanctions preventing the use of the Novatek-led 19.8mn t/yr Arctic LNG 2 export terminal, this might bring more LNG supply to the market in 2025 than previously envisaged. Looking further ahead, Trump's pledge to reverse incumbent president Joe Biden administration's LNG licensing pause and speed up the approval of new liquefaction projects may have boosted expectations of global LNG supply towards the end of this decade. But other market participants expressed concern about a potential threat to US LNG exports to Europe in the medium term if the new administration opts not to co-operate with the EU on establishing a framework for monitoring, reporting and verifying methane emissions, which may hamper US-EU LNG trade flows once the EU methane emissions regulation is fully implemented. This, coupled with a \"drill, baby, drill\" policy in the US domestic market, may lead to a deeper gulf between the two markets, some said. Trump's pledge to impose tariffs on imports into the US, particularly against China, may trigger the risk of retaliation that could affect LNG flows from existing facilities — as was the case in 2019, when deliveries of US LNG to China fell to zero as a result of the trade war between the two countries, before rebounding sharply in 2021 after the two countries agreed on a preliminary trade deal. Only one Chinese buyer had US offtake at the time, but many more subsequently signed on for US LNG, totalling about 22mn t/yr from existing and planned liquefaction projects. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.","links":[{"rel":"article","href":"https://api.argusmedia.com/articles/2625862"}],"tags":null,"taxonomy":null,"id":2625862,"language":"en-GB","body":null},{"type":"Analysis","datePublished":"2024-11-06T13:19:08Z","headline":"Q\u0026A: French state auction for biomethane RGGOs","summary":"London, 6 November (Argus) — France's first auction for state-owned biomethane renewable gas guarantees of origin (RGGOs) is due to take place on 4 December. It will be run by European Energy Exchange (EEX), which also manages the French biogas registry. Argus spoke to Aude Filippi, director of business development gas and sustainability markets at EEX, about biomethane RGGOs in France and the new auctions. Edited highlights follow: How are RGGOs currently traded in France? All RGGOs for biomethane injected into the French gas grid are currently exchanged via the over-the-counter (OTC) market, and the transfer of ownership is done via the French biogas registry. The RGGOs are tradeable for 12 months and usable for 18 months, and are issued in monthly intervals. The market has been growing quite significantly. Between January and September 2024, 8.5TWh of RGGOs were issued and 7.2TWh cancelled, while in 2023 there were 9.6TWh issued. Almost all of the issued RGGOs are cancelled, with very few expiring after 18 months. Why are the biomethane RGGO auctions being launched now? The French state owns all the RGGOs from biomethane produced from subsidised plants where the contract was signed after 9 November 2020, and now the French state wants to sell them. Even though the contracts were signed in 2020, it takes time to put biomethane into production, so very few of the RGGOs have expired so far. But the volume being produced is growing so it is important that we now have the auctions. What size volumes are you expecting to be in the new biomethane GOO auctions? We expect over 80,000MWh in the first upcoming auction, with volumes likely to increase in the following sessions. What buyers are you expecting to participate in the auctions? Essentially it will be the members of the French biogas registry that we have connected today. And some members connected to the French power GOO auctions at EEX might participate, so we expect that it will be a similar target group, but for gas. Will buyers be able to export the biomethane GOOs for use in other countries? Today we are not yet connected to a hub for the international trade of RGGOs. At the moment, we are working with the hubs to get connected. Why do the auctions have a mechanism for certain buyers to reserve volumes in the auction? The idea is that the operator of a production device will have the ability to buy the RGGOs produced from this particular device from the French state. They are then committing for one year at least to buy these RGGOs at the auction price plus a 30pc premium. By Emma Tribe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.","links":[{"rel":"article","href":"https://api.argusmedia.com/articles/2625744"}],"tags":null,"taxonomy":null,"id":2625744,"language":"en-GB","body":null}],"itemsCursor":null}]}}},"__N_SSG":true},"page":"/[[...path]]","query":{"path":["commodities","natural-gas"]},"buildId":"61995","assetPrefix":"https://www.argusmedia.com","isFallback":false,"isExperimentalCompile":false,"gsp":true,"locale":"es","locales":["default","en","es","zh","ru","pt","ja","fr","de"],"defaultLocale":"default","scriptLoader":[]}</script></body></html>

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