EU GAS PRICES SURGE TO 3-YEAR HIGH – With futures breaking through 56 euros per megawatt hour (MWh)
The price of natural gas in the European Union (EU) has surged by as much as 60 percent over the past two days, with futures breaking through 56 euros per megawatt hour (MWh) to hit a three-year high, driven by the shutdown of a liquefied natural gas (LNG) facility in Qatar and the closure of the Strait of Hormuz amid heightened Middle East tensions.
Qatar’s energy firm QatarEnergy announced force majeure following attacks on two of its main facilities during the ongoing conflict.
The company in a statement said QatarEnergy has declared Force Majeure to its affected buyers, further to the announcement by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products.
Meanwhile, the closure of the Strait of Hormuz has choked off shipments from other major producers in the region. These ongoing disruptions have added fresh pressure to Europe’s already stretched winter gas reserves, raising concerns about tight supply heading into the summer months.
