EU’s ACER publishes first NWE LNG spot price assessment

The EU Agency for the Cooperation of Energy Regulators (ACER) published its first LNG spot price assessment on Thursday for Northwest Europe.

According to ACER, its DES LNG spot NWE price assesment was at 56.77 euros per megawatt hour (MWh) on Thursday.

The agency did not publish its DES LNG spot South Europe (SE) assessment as “the LNG market data reported for the SE price assessment during the relevant rolling time window is not sufficient.”

According to ACER, there were in total seven transactions and eleven market participants.

The agency aimed to launch the assessment last Friday but it did not receive enough data from market participants to publish a price.

According to ACER, 60 registered LNG market participants can report to the agency.

“LNG market participants are reminded on their reporting obligation and encouraged to report their LNG market data via TERMINAL,” it said.

This price assessment is part of the EU’s plan to launch a new daily LNG benchmark by March 31.

Currently in EU, the standard benchmarks are related to the Dutch Title Transfer Facility, and market players use the TTF price for both pipeline gas and LNG.

The EU requires ACER to develop an alternative transaction-based LNG benchmark “based on verifiable price assessments for LNG cargo deliveries to EU, to ensure the new LNG benchmark is reflective of real-world prices for the fuel,” the agency said.

European LNG imports surged last year as European countries look to boost energy security and replace pipeline gas from Russia. Most of these volumes came from the US.

Due to high demand, European terminals such as the Dutch Gate LNG in Rotterdam, UK’s Grain LNG, and Greece’s Revithoussa terminal received record number of cargoes last year.

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