In September, natural gas prices on the gas exchange decreased by 12 percent
Following extremely active trading days at the end of August, in September, after concluding 1.417 transactions, 158 GWh of natural gas were traded on the GET Baltic gas exchange. Compared to the previous month, September turnover fell by 60% (August 2022 – 394 GWh). The lower traded volume on the exchange could have been affected by falling but still high gas prices in Europe and, as a result, significantly decreasing gas consumption in the Baltic-Finland region. The value of the Baltic-Finnish gas index BGSI in September was lower than the Dutch TTF M+1 index formed in August for the September delivery, but higher than the Dutch TTF and Polish TGE indices formed in the spot markets. More than half of the total amount traded were cross-border (ICA) transactions – 95 GWh, compared to the previous year, the amount of ICA increased by 45% (September 2021 – 66 GWh). In September, 65% of the total volume traded was sold on the Lithuanian market area, which was influenced by the increased price differences between the market areas. In Lithuania, the average gas price was the lowest among all market areas. In September, 52 exchange participants actively submitted orders on the exchange, all of them successfully concluded transactions.
Prices of individual transactions in September ranged from 175.00 EUR/MWh to 276.18 EUR/MWh. The Baltic and Finnish natural gas price index BGSI, which measures changes in natural gas prices on a daily market, compared to the previous month fell by 12% and amounted to 211.81 EUR/MWh (August 2022 – 241.69 EUR/MWh). The cheaper gas trade on the gas exchange could have been influenced by a significant decrease in consumption in the Baltic-Finland region due to still high gas prices, as well as due to downward trending gas price indices in Europe as natural gas storages fill up. September BGSI reached 209.83 EUR/MWh (↓17%) in the Lithuanian market area, 210.48 EUR/MWh (↓13%) in the Latvian-Estonian common market area, and 215.91 EUR/MWh (↓3%) in Finland.
More detailed information is on the Baltic-Finnish Gas Exchange Trading Report for September 2022.
All Baltic-Finnish Gas Exchange Trading Reports are available at www.getbaltic.com