European gas prices soar by nearly 50 percent as Qatar halts LNG output after Iranian attacks
Benchmark Dutch and British wholesale gas prices have soared by nearly 50 percent, after major liquefied natural gas (LNG) exporter Qatar Energy said it had halted production due to attacks in the Middle East.
“Disruptions to LNG flows would reignite competition between Asia and Europe for available cargoes,” said Massimo Di Odoardo, vice president, gas and LNG research at Wood Mackenzie.
The Dutch front-month contract at the TTF hub, seen as a benchmark price for Europe, was up 14.56 euros at 46.52 euros per megawatt hour (MWh), or around $15.92/mmBtu, by 1255 GMT, ICE data showed.
Prices were already about 25 percent higher earlier in the day, but extended gains after Qatar Energy’s production halt.
Benchmark Asian LNG prices jumped almost 39 percent on Monday morning with the S&P Global Energy Japan-Korea-Marker (JKM), widely used as an Asian LNG benchmark, at $15.068 per million British thermal units (mmBtu), Platts data showed.
“If LNG/gas markets start to price in an extended period of losses to Qatari LNG supply, TTF could potentially spike to 80-100 euros/MWh ($28-35/mmBtu),” Warren Patterson, head of commodities strategy at ING, said. The British April contract was up 40.83 pence at 119.40 pence per therm, ICE data showed.
Iran targets energy sites as Israel strikes Tehran; US jets crash in Kuwait
US president says attacks on Iran will continue until all objectives are met, as Tehran keeps up raids on US assets.Virginia Pietromarchi (Al Jazeera)
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