Approximately 20% of global LNG exports pass through the Strait of Hormuz. Following recent tensions in the region and an attack by an unmanned aerial vehicle launched from Iran targeting Qatar Energy’s facilities in Ras Laffan Industrial City, Qatar, production at the facility has been halted. This development has led to a significant tightening of gas supplies in Europe.
On the Dutch virtual gas trading hub TTF, gas prices for April delivery rose to EUR 65.5 per megawatt-hour as of 14:20 TRT. Prior to the attacks, on 27 February, prices stood at EUR 31.95 per megawatt-hour. This represents an increase of more than 100% in European gas prices, with a single-day rise of 47% compared to yesterday’s closing.
Energy market analysts warn that the halt in trade through the Strait of Hormuz and the production disruption in Qatar could prolong uncertainty and price volatility in both European and global LNG supply.
Comments
No comment yet.