Of Thanks to Floudopoulos
The energy market, the crisis in Ukraine and the increasingly probable scenario of a military conflict are of double concern.
More specifically, possible military ignition is expected to create problems on the front of energy security and smooth energy supply.
Yesterday, in fact, the extraordinary plan for ensuring energy efficiency was examined at a meeting at the Maximos Palace under the Prime Minister. At the same time, the Russian-Ukrainian crisis is creating new data on the front of energy prices.
Thus, according to energy market participants, a possible military ignition could cause a new rally and a spike in prices.
On the security front, as decided yesterday during the extraordinary meeting at the Maximos Palace, plan b to ensure the energy supply of the country includes additional imports of liquefied natural gas LNG, conversion of the operation of natural gas units using alternative fuel and utilization of lignite plants.
It is noted that the possibility of disruption of the country’s energy supply was assessed as extreme as the existing gas flows from Azerbaijan through the TAP pipeline as well as LNG imports from Revythusa are considered sufficient to meet the country’s energy needs in February. However, if the need arises for the following month, March, then the energy efficiency plan includes:
– The utilization of the lignite fleet of PPC power generation units
– The conversion of the operation of the Lavrio 4 and Komotini units so that they can use oil as fuel. PPC, as stressed at the meeting has secured the necessary reserves of lignite and diesel.
– Operation with oil of the private units of Elpedison, power 800 MW and Heron power 120MW.
The planning of extraordinary imports of LNG loads. According to DEPA, the system is covered for the next 2 weeks, however, in order to cover the needs of March, an additional 3 loads of 3 million megawatt hours will be required, for which moves are made to ensure. It is noted that DEPA, Mytilineos, Elpedison and PPC have planned cargo imports in Revythousa.
Both the moves to ensure energy efficiency and the scenario surrounding the Russia-Ukraine crisis are expected to have a detrimental effect on the price front.
It is worth noting that in recent days, signs of price easing had begun to appear. However, yesterday the prices of natural gas increased by 14%, recording a 2-week high at 88 euros per megawatt hour.
Consequently, the prices of electricity, which at a European level had begun to de-escalate, appear to be higher for today.
Indicatively in Germany they are at 155 euros / megawatt hour (increase 51.63%) in France at 193.44 euros / megawatt hour (increase 3.3%) in the Netherlands 202.1 euros / megawatt hour (increase 14.98%), in Spain 199.94 euros / megawatt hour (increase of 9.07%).
According to energy market participants, a possible military ignition in Ukraine is expected to cause a rally in gas prices, possibly breaking the record of 166 euros / megawatt hour, recorded last December.
This is because Russia is Europe’s main supplier, accounting for 40% of gas imports, of which 30% passes through Ukraine.
Finally, in addition to gas, the crisis in Ukraine also affects oil prices, which are approaching the level of $ 100.
Specifically, US crude WTI was at $ 94.74 a barrel yesterday, while Brent was at $ 95.85 a barrel, amid reduced supply and reduced stocks.
Source: Capital
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