LNG ‘Chain Reaction’ Taking Place in Europe
So, prices take another dip. They are at around 10 € per MWh, low by any standards. Even less is going to result in everyone filling up whatever storage there is. And even if storage is deep, it will fill up. What then? When prices are crazy, people are crazy, companies are crazy. Good sense goes out of the window and sometime in the summer, you will see the first pipeline gas buyers running out of storage. They will have no other choice but go into ToP which means further distress and even lower prices. This means that pipelines will go idle or lower deliveries drastically. How will that bode for North Stream 2? How will buyers react when ToP levels become ridiculous? Price reviews will abound. A slugfest for lawyers.