Yesterday afternoon, May 30, the Dutch company Gastera announced that it would not immediately supply natural gas to the Russian state gas company Gazprom. Gazprom says it has cut off natural gas supplies to the Netherlands after refusing to pay in rubles. What is the market impact of high energy prices?
The past few months
Dutch gas prices have been a strong response to supply news for months. On May 31, the price of gas at the title transmission facility is higher than the closure of the Dutch gas trading platform, which plays a major role in European energy levels. July’s daily gas price rose to € 94 between the hours of 8 and 10 am, opening at 3 euros per megawatt hour. The highs we saw last summer are not yet, but an increase from previous highs.
Gas prices for ‘Winter 2022′ until May 30 at the head office, in the Netherlands’ gas trading platform. See current prices here.
2 Billion Meters 3 Applied Gas
GasTerra, therefore refusing to comply with the requirements of the Russian ruble, therefore, indicates that on October 1, his contract with Gazprom expired. Nearly 2 billion m3 of gas is currently unavailable. Gastera claims to have predicted this by purchasing gas elsewhere. Everyone knows that this gas also comes at a price.
The Netherlands is fully committed to importing LNG instead of Russian pipeline. This gas is expensive and cannot be purchased for 18 euros per cubic meter, which was available until last winter. “European countries have to fill their gas reserves before the winter,” he said. He is counting on liquid gas from other countries (the United States and Qatar) in the hope that the reservoirs will be filled on time. More clarity will soon be given on this.
Stable and high
It’s the tenth event of its kind this year – but basically this news is not so bad, says Bart Seth, an energy consultant with vegetable and fruit consulting firm Bikurius. “A lot has already happened. The price is already high, and in theory, with this news, there will be no gas. The 2 billion cubic meters of our road is already covered in some other way, so it is physically covered. This has led to higher prices, and the market is 2 to 3 percent higher today. “
‘Summer 2022’ contract price is higher than July 2022. For ‘Winter 2022’, an additional 3 euros per megawatt was added, and the price fluctuated around 100 euros per megawatt hour before the slightest drop in the afternoon. .
Filling gas reserves for the winter does not seem to be in danger yet due to this limited response. But the war in Ukraine is not over and uncertainty over Europe’s supply of gas could continue. During this harvest, growers work on their own energy profile. “A lot of people look at the winter, if not better, some will plant thinner or not at all, but if it exceeds expectations, they will completely steam forward.”
Prices for winter
In the greenhouse, on the other hand, companies in the horticulture sector are working on sales deals for the winter. Traders have told us that the unpaid will not be marketed. Gas prices are also often mentioned in contracts: the higher the price, the higher the selling price. “But if the price of gas stays at this high level, it will not last indefinitely for teenagers. Such a year is really unpleasant, but as long as it lasts, many growers will be forced to give up,” Bart said. This applies to the ornamental plant, which currently accounts for about 50 percent of Bikurus’ customers.
“Vegetable companies can easily switch to less expensive farms and even benefit from electricity. This is not possible in the ornamental plant sector.” They are also playing a small part in the purchase of gas. “And we can see everywhere that energy-saving measures are being taken faster: developers are converting to LED faster than you think. “Energy costs are much higher than they were a few years ago, but they will be much higher if you do not make the switch. Save lives now.”
No drama, hurry up
“There are a lot of ideas. Solutions are on the table, but it is a competition over time,” says Robert-Jan Post consulting firm DLVge. Commenting on the slight increase in gas prices this morning, he said the situation was more or less under consideration. “The current price of energy has increased with the news that has accumulated over the last six months. It all started with Nordstream 2 being delayed (and later canceled) and waiting for gas pipeline repairs in Norway. All news reports have passed. At prices this is one of them.”
However, Dutch Horticulture has been given very little time to estimate the maximum gas price. He does not expect to lose his Dutch soil in five years, but he is in a hurry. “Solutions can be found in energy technology and farming techniques. There is a strategic plan in which geothermal energy, residual heat and electricity (heat pumps), wind and solar will play a major role. “If combined with other dehumidification techniques, it will save energy and be more successful.”
People who depend on daytime gas directly experience the consequences. This is confirmed by everyone you spoke to this morning from the Greenhouse Vegetable Sector, although they responded well to the news. According to Chairman Adri Bom-Lemstra on NPO Radio 1 on behalf of the Glassstone Tube, some farmers estimate that half of them are feeling the effects of rising gas prices from today. The last few days have been relatively ‘cold’ for the year, and the greenhouse climate is costing (extra) money for crops.
Nowadays, big gardeners have come to the conclusion that they cannot produce any plants unless a reasonable cost estimate is made, but in the case of flowers, the situation is uncertain. They are grouped together, not to be independent. This applies to roses, for example, for many crops you will see black clouds gather.
“If you do not have a place, it will be very difficult next winter,” says Rose Hans van den Inde, Van Dun Indie Roses. It is impossible to say exactly what will happen, but in the same way, more or less, the “cold” part of the product is unthinkable. Whether this is a drama or not, it will be seen in the future. I talked to a cook who turned off the heater and now I said, ‘I will do this every year from now on,’ but of course not everyone thinks so.
See more information:
+316 10 93 23 45
2665 MV Bleiswijk
T +31 (0) 10 462 30 30
F. Van Dun Ende Rozen
2681 LV Monster