15% increase in natural gas prices in one day
Natural gas prices in Europe rose 15 percent in September futures contracts amid uncertainty over strikes at liquefied natural gas (LNG) facilities in Australia.
At TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, the gas price per megawatt hour in September futures contracts closed yesterday at 34.4 euros.
Prices opened from 35.7 euros per megawatt-hour today, rose 15 percent during the day compared to yesterday’s close and reached 39.4 euros.
The prospect of strikes for better pay and working conditions for those working at LNG facilities in Australia, and rising concerns about a supply disruption, were effective in driving up prices.
Prices in Europe have been fluctuating since news of the strike broke in the middle of last week.
AUSTRALIA LARGEST WORLD EXPORTER
While Australia is the world’s largest exporter with 80.9 million tonnes of LNG exports last year, it has a 20.1 percent share of global LNG trade.
Chevron’s and Woodside Energy Group’s Gorgon, Wheatstone and North West Shelf facilities in the country, with 40.8 million tonnes, make up half of Australia’s total LNG export capacity and 10 per cent of world trade volume of LNG.
Although the direct supply of LNG from Australia to Europe was limited, the fact that the supply of Russian gas to the continent was greatly reduced after the Russo-Ukrainian War increased the reliance on LNG imports from Europe.
Therefore, supply concerns in global LNG markets directly affect gas prices in Europe, and ongoing risks cause price fluctuations. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
