Under normal weather conditions European power market may rebalance after winter, said Penny Leake, Wood Mackenzie research analyst for European gas, Trend reports citing the company.
The analyst believes that this might see gas prices dropping by more than 35 percent, trading closer to levels Europe had in late July 2022.
“However, Europe’s hope to get through this and next winters is predicated upon record LNG imports - expected to reach a 40% market share in Europe next year, while Russia reduces below 10%- requiring high gas prices and Europe remaining the LNG premium market globally,” she says.
Massimo Di Odoardo, vice president, Gas and LNG research for Wood Mackenzie notes that strong LNG and non-Russian pipeline imports have helped get Europe gas storage levels to 80 percent at the end of August, beating expectations.
“We expect this to rise to 86 percent by the beginning of October. If Russian flows from Nord Stream resume at current levels following the three-day maintenance in September, Europe could be in a position to get through this and next winter without demand curtailments,” he added.