Natural gas futures surge in Europe amid concerns over decline in US output
Date
1/22/2025 1:39:36 AM
(MENAFN) Natural gas futures surged in European trading on Tuesday amid growing concerns over a decline in U.S. production and exports caused by cold weather and snowstorms across the United States. The harsh weather has raised fears of disruptions to energy supplies.
European benchmark futures climbed by 5 percent to exceed 50 euros per megawatt-hour for the first time in two weeks, according to Bloomberg News. A severe hailstorm in the southern United States has posed risks to power generation, while liquefied Natural gas (LNG) exports from the country have already dropped by about 6 percent compared to the previous week, based on data from Bloomberg New Energy Finance.
Earlier today, natural gas deliveries to the LNG export terminal in Freeport, Texas, were halted, suggesting that three production units might be out of service. The reason for this disruption remains unclear, adding to concerns about supply constraints.
The International Energy Agency has warned that Europe will face greater challenges in replenishing its gas storage tanks during the summer, following the winter peak demand season. These difficulties are expected to intensify due to the complete stoppage of Russian gas deliveries via Ukraine, which has been in effect since the start of this year.
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