BAKU, Azerbaijan, Sept.5
By Leman Zeynalova - Trend:
Gas prices will continue upward trend into 2022, Trend reports with reference to the UK-based Capital Economics research and consulting company.
Natural gas prices climbed again in August. Soaring temperatures in Southern Europe boosted demand for air-conditioning and, in turn, power consumption. This was another factor weighing on already-low stocks. At the same time, Europe’s LNG imports have been low even for the time of year.
“High LNG prices may be one factor explaining low European LNG purchases, but there has also been strong demand for LNG in Asia. Similarly, extreme weather has affected Asia this year and pushed up power demand there too. As a result, regional coal prices have also soared,” said Capital Economics.
The high price of coal has deterred some buyers, including India, where stocks at power plants are now very low. “We think that natural gas prices will remain elevated moving into 2022, but they should ease back from current highs and simultaneously put downward pressure on coal prices.”