Belgium, (Brussels Morning Newspaper) The US natural gas market is growing and the energy crunch in the EU could keep demand high in the coming years, according to traders.
Natural gas prices are growing more volatile as the EU is weaning itself off Russian imports, according to Reuters reporting on Friday.
Natural gas prices at the main US trading hub have increased 64% this year, reaching the highest level since 2008.
Canadian TD Securities investment bank announced plans to strengthen its gas trading desk, with four sources noting that US Balyasny Asset Management (BAM) investment company, Williams Companies and Phillips 66 energy companies are preparing to follow suit.
David Byrne, a director at Aurex Group recruitment firm, pointed out that “a significant driver to this growth is the outsized returns a lot of these trading shops saw in 2021.”
Industry officials noted that demand for natural gas and carbon permits is rising as part of the green transition.
Expansion underway
Sources pointed out that BAM recently expanded its gas trading team, while Williams Companies hired industry veterans to help the company launch its liquefied natural gas (LNG) operation.
According to information on LikedIn, Phillips 66 is preparing a power and gas trading desk for its refineries, with the company confirming its hiring plans, but declining to go into detail.
TD Securities is planning to set up its carbon trading groups in the EU and North America, with the company’s head of commodities David Swinburne stressing “we are investing in our energy sales and trading capabilities while equally committed to a comprehensive offering to help our clients transition to a low carbon economy.”
US energy marketing company Vennsmith Carbon is strengthening its natural gas desk, predicting that “the energy transition will put unique pressures on natural gas markets and result in an extended period of high volatility.”
Ossie Okeke, a managing partner at the company, noted that the team “has the technology and experience building physical and financial platform to capture the resulting opportunities.”
US Element Markets environmental asset management company predicted that renewable natural gas (RNG), which currently accounts for a small percentage of US natural gas consumption, has the potential to reach up to 15% of the mix.
Company CEO Angela Schwarz concluded “development capital is now being directed into RNG production helping to overcome current market constraints.”
