News Archive - Monthly Archives: June 2022

Market knowledge invaluable in energy procurement decision making

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At Energy Management Ltd, we believe that expert guidance and support are more important than ever before in the ever-changing energy markets.

Our years of industry experience allied to the best market-tracking software and analysis tools enable us to provide invaluable insight into the drivers that impact oil, gas and electricity prices.

Understanding those factors is key to implementing a well-informed energy procurement strategy that is individually tailored to your own specific business needs.

After a big spike in the early part of March, gas and electricity prices have remained fairly stable over the last two months but an upward trend can easily reoccur due to largely uncontrollable factors.

LNG fleet grounded

As we reach the middle part of the year, the drivers behind energy price rises remain as variable and unpredictable as ever.

Only last week, damage to the Freeport LNG Terminal in the United States caused by an explosion and subsequent fire in the plant shook the European markets as it accounts for 20 per cent of LNG gas processing.

Growing dependency on LNG deliveries from the US means the longer this goes on, the twitchier the markets will become.

The latest estimates suggest a three-week downtime period. Normally in that time, 13-15 LNG vessels would deliver LNG supplies, so not an insignificant amount, and it goes without saying, the markets will be keeping a keen eye on that situation in the weeks ahead.

Storage target under lock and key

Meanwhile, the EU has passed the 50 per cent gas storage landmark ahead of forecast. At that replenishment rate, the 80 per cent target rate will be met well ahead of the November deadline, possibly September.

On that note, a formal application has been submitted by Centrica to reopen the Rough Storage facility in the North Sea five years after its closure. A bearish or bullish response will be triggered depending on the outcome.

The COVID-19 lockdown situation in China, one of the world’s biggest energy-consuming countries, is always a keen area of focus as prices rise and retract depending on whether restrictions are being rolled back or reimposed.

Also, the gas maintenance season is now into its stride but activity appears to be at the lower end of the scale at present.

Read more on how our Energy Procurement expertise enable us to get the best energy deal for your business.

Denmark hosts global conference on energy efficiency

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The International Energy Agency’s 7th global conference on energy efficiency is currently taking place in the small Danish town of Sønderborg, best known as home to some of Europe’s largest green technology companies.

In his opening address, Denmark’s Minister for Climate, Energy and Utilities, Dan Jørgensen, highlighted the challenges facing today’s society and presented some of the solutions that will help countries become more energy-efficient and more energy independent, especially from countries such as Russia.

“It is a conference held at the right time and if you excuse my modesty, in the right place,” he said.

“The time is right because, unfortunately, we are in the middle of an energy crisis due to the war on Ukraine and, of course, a climate crisis, and we desperately need solutions.

“It is the right place because Denmark, in general, and Sønderborg, specifically, for decades now has developed some of the solutions that we need.

“Denmark is far from perfect, we still have a long way to go. But we have taken big steps towards greening our society and making us less dependent on fossil fuels.”

The oil crisis of a half-century ago prompted Denmark to embark on a green revolution and the country became home to the first offshore wind farm.

In addition to renewable energy generation, Denmark became a forerunner in energy efficiency, one of the ways in which households and companies alike can mitigate against record oil prices as part of their overall energy management strategy.

“Energy efficiency is not only about using less of it but also about how you use it and how many times you use it.

“The IEA estimates that with faster efforts in energy efficiency we will be able to save 28million barrels a day, that is almost three times as much as Russia’s current daily oil production, or put differently, 660 billion cubic metres of natural gas a year that’s four times as much gas as the EU imports from Russia,” Mr Jørgensen points out.

The IEA 7th global conference on energy efficiency runs from 7-9 June.