Based on multiple media reports, a trader said at the E-World energy exhibition in Germany that as the price of natural gas plummeted to the level before the European energy crisis, the situation that "producers have to pay buyers for natural gas" seems to be becoming increasingly likely.
Although this situation is very rare, it is not impossible. Previously, in October 2006, as the natural gas storage capacity in the UK reached 96%, and the Langeled natural gas pipeline from Norway increased the supply, the local gas price once fell to a negative value.
Continental Europe is now facing a similar scenario, with faster-than-expected inventory filling and significantly lower consumption, coupled with strong wind and solar power. Although the gas storage capacity of EU countries is higher than that of the UK, there is still the possibility of negative prices, but the probability will be lower.
At present, the filling capacity of European gas storage facilities has reached about 66%, which is significantly higher than the level of previous years. Some expect the gas storage facility to fill up as early as August this year.
As long as storage is full for a few days, we may see some single-digit prices. "
For now, ultra-cheap natural gas is not boosting industrial demand , with some buyers delaying purchases, further weighing on the market.
It is worth mentioning that negative electricity prices have appeared more and more frequently in the European electricity market recently.
