Natural Gas Prices Surge In Europe Amid Supply Concerns

(MENAFN- Yolo Wire) %NaturalGas prices across Europe are surging higher as concerns grow about the available supply amid a blast of cold winter weather.

The benchmark price for natural gas on the continent has gained more than 3% in the past 24 hours, rising to 50.30 euros per megawatt-hour.

The price rise is mainly due to a disruption at the Freeport LNG facility in the U.S. and the announcement that Germany may provide subsidies for storage refills during the summer.

The move by Germany is aimed at ensuring Europe’s biggest economy meets its target 2025 storage levels.

At the same time, gas storage levels across the European Union (EU) have fallen below 60%, which has led to increased demand for liquefied natural gas (LNG), especially with cold temperatures descending.

Natural gas is widely used to heat homes and businesses across Europe.

Flows of natural gas to Europe have also been hurt by the shutoff of Russian pipelines due to the ongoing war in Ukraine.

Some analysts are now warning of potential natural gas shortages across Europe at the coldest time of the year.

Natural gas demand, supply, and global prices are also being impacted by a blast of winter weather across the southern U.S. that has brought unusually cold temperatures and snow as far south as Florida.

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