ENTSOG Gas Regional Investment Plan South 2017 - Main Report

5.3.2 EVOLUTION OF EUROPEAN HUBS

In Europe, there are several organised gas markets, usually at country-level. Nevertheless in some countries there is more than one market area. Figure 5.7 shows the main natural gas European hubs.

In order to show the evolution of main European natural gas hubs, we have analysed the behavior of energy prices at these organised markets. Main facts: \\ In general terms, until September 2016 convergence of day-ahead prices on main European hubs has continued, with the exception of Italian PSV and Spanish PVB, which remained higher for the whole period. \\ During 2015 a continuous decreasing trend is ob- served. From February 2015, the low gas demand, low oil prices and steady LNG supplies have con- tributed to extend this decreasing trend in the main European hubs until the first quarter of 2016. \\ From September 2016, increasing trends on European gas hubs were detected. Among the several factors that have influence on the raise of prices in Europe were: growing oil and LNG prices, decreasing of production in Groningen fields, and some problems in some infrastruc- tures in Europe (in some underground storages, outages affecting Norwegian infrastructure and so on).

TTF

NBP

ZTP

GASPOOL

PEG Nord

NCG

TRS

PSV

PVB

Figure 5.7: Main gas Hubs in Europe

(Source: TSO own elaboration)

€/MWh

40

35

30

25

20

15

10

5

0

Aug 14

Oct 14

Jan 15

Mar 15

Jul 15

Oct 15

Jan 16

Mar 16

Jul 16

Oct 16

Jan 17

PEG NORD

NBP

GASPOOL

ZEEBRUGGE

TRS

NCG

PSV

TTF

PVB

Figure 5.8: Day-ahead European hubs prices (Source: Platts, Bloomberg, ICIS Heren and own elaboration)

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Gas Regional Investment Plan of the South Region 2017