European gas trading volumes in 2020 is expected to increase from last year’s record of 63,038 terawatt-hours (TWh) amid trading hub expansions due to growing demand for gas price hedging, according to a report by a consulting and research firm. The report said wholesale gas trading volumes across 11 European countries increased by 20% in 2019. The volumes also rose by 20% in the January-June period of 2020.
According to the report, European gas trading volumes not only survived but prospered during the coronavirus pandemic as domestic production, especially in the Netherlands, is falling. High carbon emissions rights prices also depress coal’s profitability, accelerating the switch to natural gas.
The report also noted that trading volumes in Dutch gas exchange TTF rose 45% in 2019 from 2018. Meanwhile, volumes at Britain’s NBP dropped 18% over the same period. Dutch TTF has become the primary exchange for spot and forward delivery gas in the continent.
