Episode 1063: Think Tank: Europe petrochemicals face another ‘Winter of Discontent’ despite better gas supply
Gas storage is bigger and more full, but region’s chemical sector faces another difficult winter driven by poor demand and overcapacity, especially in China. - Europe ICIS TTF benchmark gas price collapses from more than €300/MWh to €34/MWh for October- Europe gas storage is 95%, should be 100% by November- More storage, import facilities mean region is better prepared than last year- Germany industrial demand is 20% lower than 5-year average- Cold winter in Asia and Europe would cause problems- Long-term global LNG supplies will rise as US, Qatar almost double production- Fertilizer demand is up as prices have fallen - Europe fertilizer sector undermined by cheap imports- Fertilizer production in Europe has risen from 30% to 70% of capacity- China demographics, property woes will stifle economy- China chemical exports will continue to rise