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ENERGY

Denmark’s gas stocks at full capacity as price drops

A drop in the price of gas is related to high current stocks in Denmark and other parts of Europe.

Denmark’s gas stocks at full capacity as price drops
Denmark's gas storage facility at Lille Torup near Viborg. Photo: Bo Amstrup/Ritzau Scanpix

Denmark’s gas stocks are currently at capacity, national company Energinet and interest organisation Green Power Denmark told news wire Ritzau.

High storage levels in Europe are related to current low spot prices, but the stores alone are not enough to see Denmark through the entire winter.

The spot price of a commodity is the price at which it is traded for immediate delivery.

“Right now, the Danish gas stores are full to the brim with gas,” Green Power Denmark senior consultant Kristian Rune Poulsen told Ritzau.

“This means we are well stocked when we go into the winter. We can simply not get any more gas into storage than we have at the moment,” he said.

That means there are currently enough supplies to last Denmark two to three months according to the analyst.

As such, Denmark still needs to produce biogas and import some gas to have enough for the winter months.

European data shows comparable situations in bigger EU countries like Germany and France, and the spot price of gas is now at its lowest level for the last year.

Western Europe countries maximised gas storage during the summer to guard against a cold winter and high demand.

But milder current weather, strong winds giving high turbine electricity production and high levels of liquefied natural gas (LNG) supply to Europe means the stored gas could last longer than previously expected.

READ ALSO: At what time of the day is electricity cheapest in Denmark?

Poulsen told Ritzau that Europe is still receiving large quantities of gas and that he did not think a gas shortage this winter was likely.

Other countries in Europe have similarly full stocks, pushing down the spot price.

“That the Danish – and actually, many other European gas storages – are full or almost full has made the spot price of gas dive quite considerably,” he said.

“The price of gas for delivery here and now is at the lowest level we have seen for over a year,” he said.

Denmark’s two gas storage facilities are operated by Gas Storage Denmark, which is owned by state company Energinet.

READ ALSO: EXPLAINED: When should I turn on my heating in Denmark this year?

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ENERGY

Danish Energy Agency advises homes with gas heating to conserve

The Danish Energy Agency (Energistyrelsen) has issued guidelines to households heated by individual gas heaters in a bid to help them avoid very high bills.

Danish Energy Agency advises homes with gas heating to conserve

Around 240,000 households in Denmark will receive advice from the agency by physical or digital post, the agency said in a statement on Friday.

Gas prices in Denmark are currently rising as temperatures drop and energy production from wind turbines falls due to weather conditions.

READ ALSO:

“The Danish Energy Agency views it as an important task to help people like those with individual gas heaters [Danish: gasfyr] through good advice about how they best can reduce their heating consumption and take the worst off their gas bill,” head of office Vincent Rudnicki said in the statement.

The information letters are part of a national energy saving campaign which seeks to cut energy consumption during a period when prices can go through large variations.

When gas prices reached their 2022 peak in August, one megawatt hour of gas cost over 300 euros according to the Dutch exchange TTF.

At the beginning of December, the price has increased to 131 euros per megawatt hour after going through a period with lower prices during the autumn.

Although the price remains low compared to August, it is higher than it was two years ago, according to comments previously given to news wire Ritzau by Sydbank’s senior economist Søren Kristensen.

Kristensen said that the cost of heating a housing in Denmark is now 10,000 kroner per year higher on average than it was in the years prior to the energy crisis.

He also said that the winter is likely to push prices up from their current level.

“That will unfortunately mean that it will in no way be a cheap winter in relation to heating up the house or using electricity,” he said.

The Danish Energy Agency information letter will be sent to persons who own single-family houses which are heated by natural gas heaters, according to information stored on the national register BBR (Bygnings- og Boligregistret).

“At this time we have particular focus on those who live in villas or semi-detached houses because they have seen the largest of all the gas bill increases,” Rudnicki said.

In some cases, persons who no longer have gas heating will receive the letter if the BBR registry has not been updated, he noted.

Advice included in the information packs includes reducing temperature, using less hot water and having gas boilers services.

The saving tips may also be relevant for people who live in other types of housing, such as apartments, rental houses or terraced houses, according to the Energy Agency.

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