Strategic gas reserves reach 100% and contain their price

Strategic gas reserves reach 100% and contain their price
Strategic gas reserves reach 100% and contain their price

Spanish strategic gas reserves They just reached 100% capacity and contain the price of fuel. The daily price in the Spanish market (Mibgas) It has remained at 34.80 euros in the first fortnight of the month megawatt hour (MWh) and is alleviating the costs of the Valencian textile and ceramics sectors, according to data from the energy consultancy Grupo ASE. The price per MWh of natural gas It reached 125 euros in September of last year75% more expensive than this year.

On September 14, Spanish gas reserves reached 100% of their capacity, 24 percentage points above the level they had on that same day last year. In Europe, gas reserves are at 94.31%.

Objective surpassed

This high level of gas reserves after the supply effort made by Spain and the rest of the European Union countries dispels the fear of a sharp rise in fuel and the price of electricity in the second half of the year. Brussels’ goal was to reach 90% next November 1st. The abundance of natural gas, thanks above all to imports from the United States and the work of regasification plants like the one in Sagunt, has caused the price of fuel to fall to the aforementioned 34 euros per megawatt hour (MWh).

The association of large energy consumption companies foresees price stability all year round

Plant in Sagunt that burns gas to produce electricity.

Essential cost

Controlling the cost of gas is essential for large consumers such as the ceramic industry and for the rest due to the impact it has on the price of electricity. 20% of the electricity currently produced in Spain comes fromgas burning plants.

Twelve months ago, in Europe there were fears of a total cutoff of Russian gas supplies to stop aid to Ukraine and the goal set at that time of reaching November with at least 80% of reserves covered was at stake.

On July 14, 2022, European warehouses were at 60% capacity. This situation forced a premium to be paid for gas to attract LNG tankers from the United States and divert them from Asia. In an extreme case, Brussels even raised the possibility of rationing gas in the industry so that Central European homes do not lack supply. It must be taken into account that In the European Union, household consumption represents 40% of the total. Combined cycle generation (in the EU as a whole) absorbs around 30% and industrial consumption represents another 30%.

Contained price all year round

The Association of Large Energy Consumption Companies (Aege) also foresees price containment for the remainder of the year.

The rains cause the light to rise

The decrease in renewable production (mainly due to the storms of recent days) has caused an increase of 7.37% compared to August in the price of electricity in the first fortnight of the month, according to data from the energy consultancy Grupo ASE. However, the cost of electricity is 57% cheaper than a year ago. At that time, the war in Ukraine raised fears for energy supplies. The increase compared to August is due to the fact that photovoltaic production has fallen by 23.84%.

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