Conclusions to the report

The first winter without gas from the Tyra complex passed uneventfully, without any incidents threatening the security of supply. The key reasons for this were a mild winter 2019/2020, and that Energinet and market participants have prepared for the situation beforehand. Total E&P Denmark has announced that the re-opening of the Tyra complex will be postponed until 2023. The same assessment of the supply situation still applies, i.e. that it can be maintained if market participants respond appropriately and book sufficient storage and transport capacity to supply Danish gas consumers.

The reduced gas supply from the North Sea and increased import from Germany has led to a jump in gas prices in Denmark compared to the price in Germany, corresponding to the cost of sourcing the gas from the south. At the same time the price level has been at a historic low level due to a combination of high gas storage levels from a mild winter and COVID-19, which led to an oversupply of gas in Europe. Contrary to expectations, an abundant amount of gas has been available and the expected high gas prices in Denmark never materialized.

Biomethane injected into the gas system is expected to account for more than 20 % of Danish gas consumption from the grid by the end of 2020. Biomethane now poses as a real source of supply to the Danish gas market. The sizes and locations of the biogas plants means that if a few plants drop out, it will not have any impact on security of supply, as only small volumes will need to be replaced.

Overall main messages from the report

• Security of supply was high during the first year without Tyra
• Fears of high gas prices were never realised
• Fluctuations in gas quality have not caused problems for gas consumers
• Biomethane is starting to contribute to the security of supply
• Biomethane and transit gas are changing the principles for security of supply
• Energinet is working towards hydrogen opportunities in Denmark