Page 9 - ITAtube Journal 2 2024

consequences.
The prices for electrical energy in Europe, after turbulent periods, is now reported
at a level of about 60-70 €/MWh (Figure
1). The cost level for electrical energy has partially converged for the industrialized countries. Some countries with larger nuclear energy sources or other base-load energy sources at reasonable cost, still have cost advantages. Considering for example that the US-Texas based costs of about 60 €/MWh are about 16-25% lower than the average European electrical energy prices the unbalanced cost situa- tion becomes obvious. Political institutions still must control, that regulation intro- duced will not rise the electrical energy cost level creating unbalanced cost situa- tion for the industry.
Cost of natural gas, after turbulent times climbing in 2022 up to levels higher than
FigFuigreur1e: 1S:eSlecletecdtesdpsopt optripcerisceosf ionfdiunsdtruiasltreilaelcetrlieccatlreicnaelregny esringcyesi2n0c2e32i0n2€3/MinW€h/MWh Source: Statista.com, Kallanish, com
again climbed up again to a level of about 2,7 USD/MMBtu, which is about 30% higher than early 2020 (Figure 2). The volatility of the natural gas price is still challenging the gas intensive industries and gas power plants. Europe anyhow, originally being supplied by Russian gas via pipelines at good values, now sources its gas needs to a great extend as LNG (Liquified Natural Gas). Just Austria and Poland still source their natural gas via Jamal pipeline from Russia. LNG on the other hand is by far more expensive than normal natural gas.
Figure 3 displays the development of the global price for LNG. Since November 2023 the LNG-price for 1MMBtu was reduced significantly from 15 to 9 USD. Since March 2024 the cost for LNG went up again to about 11 USD/MMBtu. This price right now with more than 8 USD/MMBtu is much higher, plus 8,2 USD or ab. 400%, than
the price of normal natural gas. These remarkable additional costs are applicable to such regions without sufficient natural gas supply. Europe is one of such regions with additional cost burdens. Europe is buying LNG from USA, Kuwait but also from Russia via third countries. Extended European local gas exploration or shale
Na om Ru
the industrialized countries. Some countries with larger nuclear energy sources or other
base-load energy sources at reasonable cost, still have cost advantages. Considering for
Market information
example that the US-Texas based costs of about 60 €/MWh are about 16-25% lower than the
average European electrical energy prices the unbalanced cost situation becomes obvious. Political institutions still must control, that regulation introduced will not rise the electrical energy cost level creating unbalanced cost situation for the industry.
Source: Statista.com, Kallanish, com
Co 9n
cli arly 20 ve
st of natural gas, after turbulent times climbing in 2022 up to levels higher than USD/MMBtu and another sharp increase in 2023 up to 4 USD/MMBtu, has now agai mbed up again to a level of about 2,7 USD/MMBtu, which is about 30% higher than e
20 (Figure 2). The volatility of the natural gas price is still challenging the gas intensi dustries and gas power plants. Europe anyhow, originally being supplied by Russian pipelines at good values, now sources its gas needs to a great extend as LNG (Liq
tural Gas). Just Austria and Poland still source their natural gas via Jamal pipeline fr ssia. LNG on the other hand is by far more expensive than normal natural gas.
2
igure 2: Natural Gas price development 5 years up to 19th of March 2024
9USD/MMBtuandanothersharpincrease in gas in2023upto4USD/MMBtu,hasnowviauified
F
Source: Trading Economics.com th
FiFgiugruere2:2N: NatautrualraGlaGsapsripcreicdeedvelvoeplompemnte5nty5eayresaurps utop1t9o 1o9ftMh aorfcMh a2r0c2h4 2024 Source: Trading Economics.com
Source: Trading Economics.com
ITAtube Journal July 2024
Figure 3 displays the development of the global price for LNG. Since November 2023 the Figure 3 displays the development of the global price for LNG. Since November 2023 the
Figure 3: LNG Global Price development 1 year up to May 2024
9
Figure 3: LNG Global Price development 1 year up to May 2024 Figure 3: LNG Global Price development 1 year up to May 2024
Source: International Monetary Fund, US Bureau of Labor Statistics
Source: International Monetary Fund, US Bureau of Labor Statistics Source: International Monetary Fund, US Bureau of Labor Statistics
LNG-price for 1MMBtu was reduced significantly from 15 to 9 USD. Since March 2024 the
LNG-price for 1MMBtu was reduced significantly from 15 to 9 USD. Since March
2024 th
cost for LNG went up again to about 11 USD/MMBtu. This price right now with more than 8
e