What are the key market developments in the European energy sector for April 2017?
On the 12th April 2017 Centrica Storage Ltd announced that injections at Rough, UK's biggest storage facility, will not take place until May 2018 at the earliest, following increasing concern about the condition of the majority of the wells. Should Rough continue to work intermittently over the next years, LNG players will want to reassess their regas position in NW Europe. They will be seeking winter access in the UK and summer access in continental Europe. Access to the IUK or BBL will also be an option, however Brexit adds uncertainties. Expect more volatility and trading opportunities as the market adjusts.
This report highlights some of the key market developments in the European energy sector for April 2017.
The rebalancing of LNG market will be driven by strong growth in Asia gas demand, especially in China.