LNG inflows into Southeast Europe increased in Week 25, while electricity prices rose across much of the region. Greece received 722.23 GWh, up 19.7% week-on-week, and Italy’s imports reached 4,004.02 GWh, up 5.27%. Croatia’s LNG inflows were broadly stable at 635.84 GWh, down 0.8%.
The updated flow figures indicate a well-supplied gas system across Southeast Europe. Despite that, the regional electricity market tightened during the same period, with prices increasing in multiple markets. The divergence points to a difference between fuel availability and how electricity is priced.
Gas-fired output increases alongside tighter electricity pricing
In Week 25, gas-fired generation across Southeast Europe rose by 32.3%. The increase highlighted greater reliance on dispatchable thermal capacity during the period. LNG infrastructure can support feedstock availability for gas-fired power plants, but it does not ensure lower electricity prices when thermal generation is required more often.
Electricity price outcomes therefore reflected system conditions beyond LNG intake levels. Market pricing continued to respond to changes in demand and renewable generation availability, alongside the scale of thermal dispatch. This combination contributed to tighter power-market fundamentals despite stronger gas inflows.
Greece records lower power prices with stronger LNG and renewables
Greece showed a different price direction from the broader regional pattern. Stronger LNG inflows coincided with higher renewable output, and Greece’s electricity price fell to €85.50/MWh. The outcome reflected the interaction between flexibility supported by gas supply and renewable generation contributing to the market balance.
With renewables playing a larger role in shaping pricing, gas availability did not translate into higher electricity costs for Greece during Week 25. The market still depended on dispatchable capacity where needed, but the final price level remained among the lower ones in the region.
Italy and Croatia see higher prices despite recovered or stable LNG
Italy remained the most expensive market in Southeast Europe at €127.69/MWh. Even with recovering LNG inflows, electricity prices stayed elevated due to structural tightness in the power system. The drivers cited were higher demand, weaker hydro output, reduced wind generation, and increased thermal dispatch.
Croatia followed a similar pattern as LNG flows stayed broadly stable at 635.84 GWh. Electricity prices rose by 11.2% to €102.36/MWh, supported by stronger demand and weaker renewable output alongside increased reliance on imports. Stable gas supply did not prevent electricity market repricing during Week 25.
LNG acts as flexibility input rather than direct price stabiliser
Across Southeast Europe, LNG infrastructure increasingly functions as a flexibility enabler rather than a direct stabiliser of electricity prices. It supports the ability of gas-fired generation to respond when required by system conditions. The extent of any price impact depends on how frequently and intensively thermal plants are called on.
The shift for market participants is tied to how effectively available gas translates into electricity value under prevailing grid and balancing conditions. Factors cited include flexible generation assets, grid constraints, balancing mechanisms, and cross-border trading rules that influence whether tightness results in higher-priced scarcity generation.
In Week 25, Southeast Europe demonstrated that even a well-supplied gas system cannot fully insulate electricity markets from volatility when power-system fundamentals tighten.