- Spain’s gas demand surged to 40 million cubic meters daily in early December, driven by low renewable output and colder temperatures.
- The country increased gas imports from France and raised storage withdrawals to meet the demand, reaching 97 GWh daily.
- Spain faces intense competition for LNG cargoes from the UK and Mediterranean countries, further straining supply amid high demand and cold weather.
Spain has increased gas imports and storage withdrawals to meet rising demand in early December, driven by low renewable energy production and cold weather.
From December 1 to 4, Spain’s gas demand averaged 40 million cubic meters per day, compared to 25 million in November. This surge marks a sharp rise from the 19.4 million recorded during the same period in December 2023. The increase stems from a drop in renewable output, particularly wind energy, and colder-than-usual temperatures.
Wind generation is expected to rise slightly from 10 GWh on December 6 to 15 GWh by December 9. However, according to CustomWeather, gas demand will likely remain high as temperatures are projected to drop three °C below the five-year average in the second week of December.
In response to this demand, Spain has increased gas imports from France. Net gas exports from France to Spain via the Pyrenees interconnection point quadrupled at the start of December, averaging 5.84 million cubic meters per day, up from 1.46 million in November. This marks a reversal from December 2023, when Spain exported 0.7 million cubic meters daily to France.
At the same time, Spain has withdrawn more gas from its storage facilities. Between December 1 and 4, withdrawals reached 97 GWh per day, a 17% increase from November and 7% higher than the previous year, according to Gas Infrastructure Europe.
The country faces heightened competition for liquefied natural gas (LNG). Gas prices in Spain have tracked those in Northwest Europe. The January futures contract in Spain was priced 80 euro cents/MWh lower than the Dutch TTF, the leading European gas benchmark.
Spain’s regasification terminals are also feeling pressured. According to Enagas data, as of December 5, storage levels at these terminals stood at 50% of capacity, down from 61% at the end of November. This drop reflects the strain on storage from high local demand and competition with other European markets.
The competition for LNG cargo between Mediterranean countries and the UK has intensified. The UK has maintained high LNG prices due to strong demand and cold weather. UK gas storage levels stood at 58.91% of capacity on December 4, down from 73.28% on the same date last year.
In December, the UK imported 350,000 tonnes of LNG, competing with Mediterranean countries for shipments. Traders say the UK and Italy remain the most attractive destinations for LNG due to better margins and strong demand.
Spain’s increased reliance on gas imports, storage withdrawals, and LNG shipments underscores its challenges as it competes with other European nations for limited energy resources. With limited storage capacity and ongoing cold weather, Spain will likely continue struggling to meet its energy needs throughout the winter. The situation becomes even more complicated by the rising demand for LNG in the UK and Italy, which are vying for the same cargo.