The Central European Gas Center (CEGH), built around the Baumgarten distribution and storage point for Russian gas, has expanded its role within the region since the disruption of Russian supply. The center is currently processing more gas via Germany and Italy.
The surprising thing is that when Russia stops gas transit through Slovakia, liquidity in the Austrian gas hub increases. We are a durable transaction and transit hub. The past few months have proven that," Reuters quoted CEO Gottfried Steiner as saying.
Austria re-exports gas to Slovenia, Slovakia and Hungary, with Slovakia and Hungary both being gas transit points to Ukraine. Slovakia and Hungary still buy gas from Russia via Southeast Europe.
CEGH, headquartered in Vienna, was established in 2005 to serve Russian gas transactions, including gas passing through the Nord Stream pipeline in the Baltic Sea. The 366-member center has the advantage of being a huge gas storage area around.
As of May 18, CEGH has traded 67.1 terawatt hours (TWh) of gas for spot delivery and 76.8 TWh of futures contracts, up 0.3% and 12% respectively over the same period last year.
We have reason to be optimistic that this liquidity improvement will continue, Steiner said.
Currently, most importers have replaced Russian gas with gas from Norway imported via pipeline and liquefied natural gas (LNG) delivered to European ports.
Mr. Steiner said that the gas market is starting to record increased reserves, an important factor for supply security.
The price difference profit from pumping gas into warehouses in the summer to use for the 2025-2026 winter has turned positive since April, he said.
He also pointed out that spot gas prices have fallen 24% since March, as policymakers seek to limit short-term storage.
The gap in gas prices between summer and winter - a indicator of profit opportunities - has reached 1 euro per megawatt hour since April after 6 consecutive months at negative levels.
