ENTSOG Southern Corridor (SC) Gas Regional Investment Plan (GRIP) 2014-2023 / Main Report
300 bcm/y
Therefore this has not yet had a sensible impact on gas prices but rather on demand since the availability of lower priced coal has had in Europe the inverse ef- fect of that in the USA, that is, a switch from natural gas to coal for power generation. This is visible in Fig- ures 4.13 and 4.14 that show the comparison of gas and coal prices in the EU and a reverse of the trend, established during the last years, for an important re- duction in coal imports after almost a decade of rela- tive stability. In fact these increased by approximately 10% from 2009 to 2012. In addition to the above factors we have had, in the few recent years, a series of price renegotiations between GAZPROM and several of its European customers which resulted (either through direct agreement or through arbitration decision) to higher or lower reduc- tions of the long-term contract prices. This contributed to the lower use of the LNG terminals, as shown in Figure 4.8 and as can also be seen in the next chapter 5 (paragraph 5.1.c), in the graphs showing the use of the LNG terminals capacity.
250
200
150
100
50
0
2007
2008
2009
2010
2011
2012
USA production of Shale gas
Figure 4.12: Production of shale gas in the USA
Source: USA Energy Information Administration
€
€/MWh
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40
35
80
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25
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15
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5
0
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2009 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 2010 2011 2012
01 02 03 04 05 06 07 08 09 10 11 12
2013
Brent crude spot (€ /bb l)
Coal CIF ARA (€ /t)
NBP Spot (€ /MWh)
Figure 4.13: Spot prices of Oil, Coal and Gas in the EU
Source: EU Quarterly Report on European Gas Markets, 2Q 2013 http://ec.europa.eu/energy/observatory/gas/gas_en.htm
100
90
80
70
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50
1990
1992
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2000
2002
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1990 = 100
Figure 4.14: Evolution of coal imports to the EU-27 (1990 = 100)
Source: Eurostat, http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Coal_consumption_statistics
Southern Corridor GRIP 2014–2023 |
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