European natural gas prices increase sharply amid Norwegian supply disturbances
(MENAFN) European natural gas prices surged significantly on Monday due to a drop in supplies from Norway, underscoring the vulnerabilities associated with Europe's heavy reliance on a single major supplier. The benchmark Dutch futures (TTF) experienced a nearly 10 percent increase, marking the largest jump in a month. This spike was attributed to the unexpected shutdown of the substantial Norwegian gas processing facility in Nyhamna. Concurrently, gas flows to the UK's Easington terminal, which accounts for one-third of Britain's total gas supplies, plummeted to zero.
These disruptions highlight the crucial role Norway plays in providing gas to Europe, especially after the majority of Russian pipeline deliveries ceased in the wake of the Ukraine crisis. Despite the resolution of the immediate energy crisis, the market remains highly sensitive to supply fluctuations, with traders responding swiftly to any unanticipated changes in infrastructure maintenance schedules.
Ole Hansen, head of commodity strategy at Saxo Bank, commented on the situation, noting that Norway's unforeseen stoppage once again underscores the inherent risks of Europe's dependence on gas imports. Adding to the complexity, liquefied natural gas (LNG) imports to Europe have decreased in recent weeks due to heightened demand in Asia, where a heatwave is significantly boosting fuel consumption for cooling purposes. This scenario is creating intense competition between Europe and Asia for available LNG shipments, further straining the European gas market, Hansen explained.
MENAFN04062024000045015682ID1108293226
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.