Reference gas prices in Europe surged by 40% on Tuesday afternoon, reaching the highest level since 2023 to date, reports Antena3. Prices exploded against the backdrop of uncertainties regarding the duration of the closure of the world’s largest liquefied gas export facility, located in Qatar, and the effects of its shutdown on global energy supply.
At the TTF gas hub in Amsterdam, where reference prices for Europe are set, natural gas quotes were up by 40%, to 62.10 euros per Megawatt-hour (MWh).
This is the second consecutive day of rising futures quotes for gas, after China, the world’s largest importer of liquefied gas, asked all parties involved in the conflict in Iran to allow safe passage of ships through the Strait of Hormuz.
According to Bloomberg, directors of Chinese gas companies revealed that Beijing is pressuring Iranian officials to avoid actions that would disrupt gas exports from Qatar.
The Ras Laffan facility in Qatar is responsible for a fifth of the world’s liquefied gas supply.
In total, from the close of Friday’s trading session to Tuesday, European gas prices have risen by approximately 90%. Such volatility has not been seen since the energy crisis in 2022. In the meantime, Europe has depleted its reserves and will have to compete with other buyers to replenish stocks.