Gas glut reaches Europe. Major impact on prices, security and market structure

A gas glut is heralding the dawn of a new era in the continental European gas market. The free-market price of gas will become the new benchmark and will be the guide for the price of pipeline gas. The new price environment is creating many opportunities and challenges for domestic customers, industrial users, municipal utilities, regional energy suppliers, independent traders, newcomers, power plant operators, importers and gas producers. The areas concerned are(traditionally)long-term contracts and the typical large-scale projects regarding pipeline construction, LNG infrastructure and gas storage facilities. The security of supply in Europe is improving, not least because the gas glut impairs the powerful position of the 'Gas OPEC'.