Australian strike raises gas prices in Europe

A strike by workers at Chevron’s LNG facilities in Australia has increased natural gas prices in Europe.

The price of the gas futures contract traded on TTF, the deepest virtual natural gas trading point in Europe based in the Netherlands, closed yesterday at 32.75 euros. Gas prices rose 10.5 percent today and opened at 36.2 euros.

Chevron’s LNG facilities in Australia provide around 5 percent of the world’s LNG supply.

While Australia was the world’s largest exporter with 80.9 million tonnes of LNG exported last year, it had a 20.1 percent share of global LNG trade.

EUROPE IS DIRECTLY AFFECTED BY THE WORLD

Although Australia’s direct supply of LNG to Europe was limited, the drastic reduction in Russian gas supplies to the continent after the Russia-Ukraine war increased Europe’s reliance on LNG.

Therefore, supply concerns in global LNG markets directly affect gas prices in Europe, and ongoing risks cause price fluctuations. (AA)