January 28, 2021

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The cold spell in Spain continues to increase gas prices NOW

The cold spell in Spain continues to increase gas prices NOW

The cold snap in Spain brought natural gas prices in the country to a record high on Saturday. The country is a major player in the global liquefied natural gas (LNG) market.

Comparable weather conditions in Asia brought the so-called spot price, the price for immediate delivery, to a new record last week.

Due to the high demand in South Korea, Japan and China, among other things, spot prices for LNG rose last week to $ 20,705 (almost EUR 17,000) per million British thermal units, the international standard for price information.

As a result, prices have been turned upside down more than four times since September, he wrote Financial Times recently. Countries or companies usually conclude long-term supply contracts for LNG so that they only have to pay the daily gas price in exceptional cases.

Natural gas accounts for around a quarter of energy consumption in the European Union. This is increasingly imported in the form of lng, the majority of which come from Qatar, Algeria and Nigeria.

With six units, Spain has the largest number of LNG terminals in Europe. A seventh import terminal is under construction.