Short supply of Natural Gas by Gazprom in NW Europe will lead to another rise in propane and butane prices from spot market in Q1 2022

On 1st Feb, Russian Gas giant detailed that its Natural gas exports to nations outside the former Soviet Union plunged by 41.3 percent year over year in January 2022. It is additionally said that there was 1% yearly expansion in its gas production. Despite record-high Natural Gas creation, Russia has not been sending much over its authoritative commitments to Europe in this chilling weather season. This, joined with low stockpiling levels at European locales, has brought about a Natural Gas crux in Europe and record-high costs that pushed up power costs and troubled numerous energy-concentrated organizations in Europe.

On 31st January, International Energy Agency (IEA) said in its quarterly Gas Market that in the final quarter of 2021, export of Russia's pipeline declined by near 25% yearly because of lower transit streams through Belarus and Ukraine and decreased conveyances to Turkey. Natural Gas deliveries from Russia appears to be low tightened by European gas market. With the supply shortage of Natural Gas in Northwest Europe, the price of Propane and Butane (LPG) rose in the market.

According to ChemAnalyst, it is expected that the price of Natural Gas will surge even more in the upcoming week with increase in its consumption in the chilling weather. Along with this the prices of LPG are also increasing due to higher acquisition cost on international market. With the global increase of wholesale gas and power prices the impact can also be observed in European market. On the other hand, the Russia-Ukraine crisis for the gas market could interfere Russian inventory to Europe while the U.S. could hatchet the still waiting back to-become-functional Nord Stream 2 pipeline assuming Russia invades Ukraine