Gas price on RO market lags behind CEGH benchmark on subdued demand
Following the introduction of the gas release program, the futures prices for the natural gas prices on the Romanian Commodity Exchange fell below the central European benchmark set on the Austrian CEGH exchange.
This trend will likely remain in place for the coming quarters, as the domestic market faces oversupply, according to Profit.ro.
The gas deposits are nearly 90% full, and local production increased in September as the regional gas price went above the break-even price of local producer Romgaz.
According to natural gas transport system operator Transgaz, local production has risen from about 230,000 MWh per day in August to 250-255,000 MWh in September. Romgaz says it is solely responsible for this growth.
"Starting September, the prices in the regional market increased above Romgaz's break-even level. Thus, the domestic market has offered Romgaz the opportunity to sell larger amounts, starting with September. In response to this demand, production has increased to the potential. The market is preparing for the beginning of the cold season, the early demand being determined by the estimate that the prices will increase," Romgaz manager Adrian Volintiru declared.
Data indicate that not only the domestic market has driven up Romgaz's output. For the first time since the summer of 2018, Romania exported gas to Hungary, through the point from Csanadpalota, according to ENTSO-G, the European Association of Transport Operators in Europe.
On September 13 and September 14, small exports were reported (4.75 GWh and 5.08 GWh respectively), yet a notable event.
After Romania imported approximately 60 GWh per day from Hungary in June, the amounts halved (to 27 GWh per day) in July and August, and the flows reached a balance in September.
The trend toward exports from Romania could maintain for at least several quarters, as the future price of gas for next year in Romania is RON 62 per MWh, some 9% below that on the ECHR, the equivalent of RON 68 per MWh.
(Photo: Gerasymenko/ Dreamstime)