Following the recent shutdown of the Forties Pipeline System, as well as the explosion at the Baumgarten Natural Gas Station, Wood Mackenzie has released a brief statement on the broader implications of the incidents.
Massimo Di-Odoardo, Principal Analyst, Gas & LNG, Wood Mackenzie, said: “The European gas market seems to be going through a perfect storm. The Forties outage will take out more than 1.2 billion ft3/d of gas production - more than 10% of UK gas demand. The explosion at Baumgarten has currently halted Russian imports to Italy, representing more than 30% of Italian gas demand.
"There is still plenty of storage across Europe to cope with this.
“But if supply does not resume soon and the cold weather continues, prices will remain strong through the winter. We might well see some competition between Europe and Asia to attract LNG this winter.”