Natural gas liquidity increased almost universally across European hubs in the year to 30 September 2016, although some of the factors driving up activity may be temporary.
Periods of volatility sparked interest from speculative traders at the larger hubs. Price swings were caused by two main factors, an outage at Britain’s largest storage site Rough and a more stringent cap on production at the Dutch Groningen field.
Rough accounts for about 70% of British storage capacity and a notification in June that the facility would not be able to inject for the remainder of the summer caused major shockwaves at the NBP.
The restriction on Groningen output is part of an ongoing government endeavour to reduce seismic activity associated with the extraction process. With permissible production volumes curtailed, flow profiles in northwest Europe have shifted, with the Netherlands importing more gas from Germany than ever before.
The October 2016 issue of the European Gas Hub Report gives you an update on the European landscape in Gas Year 2015, with in-depth coverage of prices, liquidity data, trade volumes and hot topics.
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