European Natural Gas Prices Surge Up to 45% After Qatar Halts LNG Production

Natural gas prices in Europe rose sharply on Monday following an escalation of conflicts in the Middle East after attacks on Iran and Qatar’s decision to halt production at the world’s largest liquefied natural gas (LNG) facility.

European gas prices climbed by as much as 45% in early afternoon trading, reaching around €46 per megawatt-hour.

A significant share of the world’s energy supply originates from the Middle East. The Strait of Hormuz, a narrow sea passage largely controlled by Iran, is one of the most critical global transit routes for oil and LNG, including exports from Qatar.

Following the attacks, Iran decided to block traffic through the strait, further heightening concerns over potential supply disruptions.

As the winter heating season approaches its end, gas storage levels across the European Union are currently below 30%, compared with around 40% at the same time last year.

The bloc’s two largest economies, Germany and France, are among the most vulnerable. According to data from Gas Infrastructure Europe, as of Saturday Germany’s gas storage facilities were 20.5% full, while France’s stood at 21%.

Source: Euronews

Photo: Associated Press