The United States becomes the first supplier of natural gas to Spain

USPA NEWS - Gross imports of liquid natural gas (LNG) in Spain increased by 7.5% in 2022. For the first time, the United States (29%) led imports against Algeria (24%), followed by Nigeria (14%), Russia (12%) and France (4%). LNG imports marked their all-time high at 319 TWh, 71% of the supply, and came from eighteen different origins. Pipeline imports, mostly from Algeria, fell 32% compared to 2021.

Spain became the main re-exporter of natural gas to Europe and contributed to the security of supply in the region, according to data from the 'Report on the wholesale market and gas supply 2022'. Gross exports to France, through the gas pipeline, reached the historical record of 35.4 TWh. The net balance of entries and exits with France was also the first exporter (13.83 TWh). In the case of Portugal, the net export balance was 1.2 TWh.

The Russian invasion of Ukraine marked the evolution of the gas market in 2002. Russian supply to Europe fell from 40% to 7% due to supply interruptions through Poland, Ukraine and Belarus, and the destruction of the Nordstream. Europe increased LNG imports by almost 60%, to 121 million tons (+45 million), mainly from the United States.

In 2022, the European reference market (TTF) marked prices above €180/MWh for several weeks between July and September 2022, compared to the average of €40/MWh in 2021. The maximum peak was reached on August 26, with €320/Mwh. The maximum reference price in Spain (MIBGAS) was lower than the European one with differentials of €30/MWh. The maximum was €240/MWh.

As of June 28, 2022, gas exports to Morocco began through the Tarifa interconnection, reaching a total of almost 2 TWh in 2022. The interconnection with France had a net export balance for seven months. Gross exports to France reached the historical record of 35 TWh. The net balance of entries and exits was also for the first time an exporter at 14 Twh. For its part, Portugal's gross gas outputs were 6 TWh (compared to 5 TWh in 2021), with a net export balance of 1.2 Twh.

In LNG, 338 ship unloadings were made (almost one a day), compared to 254 in 2021, driving strong competition in the use of national plants. Recharging operations for re-export 25 TWh (+45%) compared to 2021, mainly to Italy and Germany, stood out.

The Iberian gas market is strengthened

The volume traded in MIBGAS was 121,419 GWh, 33% of the gas demand in Spain, and was 76% more than the volume traded in 2021. The average settlement price of the D+1 product in MIBGAS 2022 it was €99.2/MWh, double the value of 2021, €47.3/Mwh. World trade reached 397 million tons, (+16 million) than in 2021. The main increase came from the United States, 80 million tons (+6 million than in 2021). The top three world producers were Australia, Qatar and the United States.

Low demand in the Asian and South American markets, largely due to high LNG prices, allowed shipments to the European market to increase (+45 million tons). The demand for LNG from China fell by 15 million tons (-19%), due to the restrictive measures of COVID-19 and the consumption of coal. Japan regained its position as the world's leading importer (72 million) compared to 63 million from China.