According to a report by ECO, Andy Brown states that, by the end of the year, energy markets were already under great pressure due to a lack of investment in new capacity and maintenance. A scenario that worsened with the war in Ukraine. "Markets were very tight at the end of last year and then we had the invasion that made the situation even worse", said the official, who has been directing Galp's destinations since February last year.
Supply not threatened
The official recalled that Russia is responsible for about half of the supply of distilled products used to produce diesel. Andy Brown assured that the supply in Portugal is not threatened, but that Galp will no longer be able to export until it finds alternatives. “We managed to satisfy the domestic market but we will not be able to export if we do not find an alternative to the Russian vacuum,” he said. “April supply is assured but May is still open,” he added. The lack of raw material could force a reduction of 10% to 15% in production, but it will not lead to a reduction of jobs, he assured.
More than oil, the company's CEO is concerned about natural gas prices and their impact on the cost of electricity. Prices are falling but Andy Brown stressed that futures contracts continue to be traded at values close to 200 dollars. "I don't want anyone to believe that the energy crisis is over."
In recent days the average price of electricity has dropped to €85 per MWh in the Iberian market due to the high winds and reached 6 MWh at certain times of the day because only renewable sources are being used. But this was a one-off situation and the price of gas will once again determine the value of electricity.
“Gas and electricity are a more important issue for Portugal and Europe than oil”, pointed out the CEO of Galp, who praised the Iberian agreement to limit the price of gas and thus stop a greater rise in electricity prices.