Baltic gas consumption continues to fall in April

Combined gas consumption in the Baltic states and Finland dropped by almost 16pc in April compared with a year earlier, owing largely to milder weather.

Combined consumption fell to just over 2.8TWh from roughly 3.3TWh in April 2022. Demand fell steeply in Lithuania and Latvia, partly offset by a steep increase in Finland where gas-fired power generation rose sharply (see consumption table).

Finnish gas-fired generation increased to 230MW in April from 151MW a year earlier, driving the country's overall gas consumption higher (see gas-fired power table). But April was the lowest month for gas-fired output in Finland since January, and well down from February's high of 311MW. The month-on-month decline can be largely attributed to the end of the heating season, as much of Finnish heat demand is electric, but it was also partly because of higher nuclear generation, which rose to just under 4GW from 3.6GW in March. Gas-fired output in Lithuania also rose on the year, by almost 30MW, and edged higher in Latvia and Estonia.

Lower consumption in the region was aided by rising temperatures across all four capitals, which were higher than in April 2022 and above the 10-year average, excluding Helsinki, where they were marginally lower (see temperature table).

Lithuanian ammonia producer Achema — the largest gas consumer in the region — has continued to delay restarting its ammonia complex at Jonava largely because of continued weak downstream demand for fertilisers. "Production will not resume until the situation changes," it said.

The average gas price on the GET Baltic exchange slipped to €47.89/MWh in April from €49.24/MWh in March, while traded volumes increased year on year to 456GWh from 315GWh. Lithuania accounted for 55pc of traded volumes in April, while the Latvia-Estonia common market area made up 22pc and Finland the remaining 23pc. All transactions were for short-term products, GET Baltic said.

LNG sendout rises

The region's aggregate LNG sendout rose in April compared with a year earlier, as the start of regular commercial operations at Finland's Inkoo terminal more than offset a slowdown in regasification from Lithuania's 2.9mn t/yr Klaipeda terminal.

Klaipeda sendout fell to 83 GWh/d last month from 92 GWh/d a year earlier. But Inkoo sendout averaged 59 GWh/d, judging by nominations. The operator is yet to report physical sendout, but told Argus that flows have held close to nominations.

Inkoo received two US cargoes last month, delivered by the 174,000m³ Vivit Americas on 2 April and the 155,000m³ Solaris on 19 April. No companies booked first-quarter capacity at the terminal, owing likely to concerns about ice and low consumption, although there was still some small sendout from Inkoo's commissioning cargo during periods of high demand.

Latvia and Estonia continue to discuss the potential use of the vacant Paldiski terminal, but this would only happen in the event of an emergency.

By Brendan A'Hearn