Security of gas supply report 2021
The Security of Gas Supply Report includes an overview of the most significant activities, challenges, and developments for the gas security of supply in Denmark and make up a reporting to the Danish Energy Agency.Download report
Security of supply remained high in Denmark during the past year. Denmark has passed through the second winter without the Tyra complex in operation, and with no incidents threatening security of supply. Despite low temperatures up until May 2021 and high demand for gas throughout much of Europe. Biomethane continues to contribute increasingly to security of supply. The number of biogas plants supplying gas to the gas system is constantly growing and the biomethane in the gas system now averages a 21 % share of volume over the year.
Main messages from the report
- The past year security of supply remained high
- The gas system is robust with enough entry-capacity combined with gas storage to bring the system through an extreme cold winter
- Denmark is still vulnerable for as long as the Tyra complex is out of operation due to redevelopment
- The unusual situation of the European and global energy markets creates a different picture, when looking at the booking of gas storage capacity, which is essential for security of supply these years.
- The shippers in the gas market have a great responsibility for security of supply to stay stable and robust, and for not causing gas shortages in case of cold weather and following increase in gas consumption.
High and fluctuating gas prices
Right now, we are seeing a gas market with high and fluctuating gas prices, also in Denmark. One reason for this is that Danish gas prices are closely tied to gas prices in Germany, which supplies most of Denmark’s gas. Overall, gas prices in Denmark are also determined by global supply and demand, which depends largely on how market participants choose to handle the availability of gas for their gas customers.
Global economies have opened up again following COVID-19 shutdowns, and in summer 2021, electricity production was based more on gas than it was the previous year, in part due to lower-than-normal electricity production from wind and hydroelectric power. These and other factors have driven up gas prices. High gas prices have made it less attractive for market participants to store gas, as they usually do in summer.
There has been no shortage of storage capacity, and in interaction with adjacent gas systems, Energinet ensured the necessary entry capacity for the gas system in Denmark.
SUBSCRIBE TO REPORTS
Receive notification directly by mail.