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(OAPEC): We are following with great interest the European natural gas markets due to the Russian-Ukrainian crisis

25-02-2022

The General Secretariat of the Arab Petroleum Exporting Countries (OAPEC) said that it is following with great interest the repercussions that the European natural gas markets are witnessing due to the Russian-Ukrainian crisis, as the first repercussions came immediately after the start of the Russian military operation with an unprecedented jump in prices according to the TTF index in the Netherlands (the main reference for gas prices in Europe). And (OAPEC) added in a press release today, Friday, that this jump amounted to more than 50 percent, bringing prices to 44 dollars per million British thermal units, compared to 29 dollars per million British thermal units the previous day. She explained that in light of the growing fears and the degree of uncertainty about the future of gas supplies from Russia through pipelines to European markets, which alone meet about 30% of Europe's needs (including Turkey) of gas, especially since some of those pipelines pass through Ukrainian territory. She indicated that these fears were slightly dissipated as a result of the continuation of gas pumping operations from Russia through Ukrainian territory without interruption, according to the contracts in force between the two sides, to record about 109 million cubic meters per day, according to data monitored by the General Secretariat of the operator of Ukrainian gas transmission networks. She stated that prices, according to the TTF index, fell during today's trading sessions to $35 per million British thermal units (that is, about $200 per barrel based on calorific value) to remain at their historical peak. She pointed out that given the current market conditions and the situation of supplies from various exporting countries and as a result of the continued decline in stocks in European markets, which amounted to about 30 percent, it is not expected that prices in the spot market will decline from their peak in the foreseeable future, especially with the continuation of the current crisis. She added that there may be a new wave of rises in the event of an increase in the demand for buying more shipments of liquefied natural gas from the already crippled spot market to ensure that sufficient stocks are secured, which will cause negative repercussions on the already exhausted global economy from the Corona (Covid-19) pandemic. . OAPEC affirmed the keenness of the Arab countries exporting natural gas, especially liquefied natural gas, to provide gas supplies to their customers to ensure the stability of global markets. Monthly" of exports achieved by the Arab countries combined in its history. She stressed that the Arab countries thus confirm their leadership as a safe, reliable and sustainable supplier of natural gas, pointing out that European markets have accounted for about 25 percent of the total exports of Arab countries. She stated that the stability of the global and European natural gas markets in particular, the reduction of sudden sharp fluctuations in prices and the achievement of energy security will remain contingent on the continuation of the necessary investments in the gas sector and dependence on it as a major source of energy in the future and the conclusion of long-term contracts between gas exporting and importing countries in order to achieve a balance between the objectives of the gas sector. Energy carbon neutrality and energy security.