European natural gas prices hit highest in more than 3.5 years
Baku, September 9, AZERTAC
European natural gas prices climbed to their highest in more than three and a half years Tuesday as escalating tensions between the US and Iran continued to disrupt liquefied natural gas (LNG) supplies from the Gulf, according to Anadolu Agency.
The benchmark European gas contract rose 4.5% to €76.7 ($89.1) per megawatt-hour as of 1720GMT.
The escalation highlighted the difficulty of reaching a resolution that could restore normal shipping through the Strait of Hormuz, a critical route for global oil and LNG supplies.
Iran warned Monday that energy infrastructure in the region, including US oil and gas facilities, could be vulnerable to additional attacks as fighting between Tehran and Washington intensifies.
Qatar, one of the world’s largest LNG exporters, has largely suspended shipments and extended force majeure on cargoes destined for European and Asian markets through the autumn amid continued disruptions in the strategic waterway.
Reduced LNG inflows have slowed the pace of gas storage injections in Europe ahead of the winter heating season.
EU storage facilities are around 66% full, below the seasonal average, leaving the European gas market increasingly exposed to further supply disruptions and colder-than-normal weather.
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