The gas market is the lowest it’s been in over ten years! Why? The Coronavirus.
What does the Coronavirus have to do with the gas market?
Well, according to this CNG blog, “This is off the back of an oversupplied market due to high levels of Liquefied Natural Gas (LNG). LNG is natural gas extracted from fields that has been super-cooled down to liquid form for ease and safety of non-pressurised storage or transport via tanker ships. Prices of LNG hit record lows last week”. Chinese buyers have turned away shipments due to the outbreak of the Coronavirus. This has forced traders to search for alternative destinations for tankers, Europe being the likely destination.
As Europe’s storage stock is also at unseasonably high levels, this could mean the gas market can potentially remain low through into early summer of 2020. Of course, this is providing the LNG supply stays high and the market remains free from any sharp spikes in demand.
What does this mean?
This is extremely positive for customers. It’s a great time for renewals and new business. Do you have a contract coming up for renewal soon? Get in touch with a highly experienced and friendly member of our team today, to discuss what we can offer. We have a 100% success rate for beating renewal costs.