European Gas Prices Rise 4% as Hormuz Standoff Threatens LNG Flows
The TTF benchmark remained 3% higher at $84.30 per megawatt-hour as Europe prepares for winter with storage 70.24% full.
European gas prices rose sharply Thursday as uncertainty over LNG shipments through the Strait of Hormuz increased pressure on buyers replenishing supplies before winter.
The Dutch Title Transfer Facility (TTF), Europe’s benchmark natural-gas trading hub, jumped 4% at the open and later remained 3% higher at $84.30 per megawatt-hour. The move kept attention on Middle East shipping disruptions and their potential effect on global inflation and risk markets.
European gas storage was 70.24% full as of midnight ET on Sept. 23, with 794.84 terawatt-hours stored underground. The region is entering the heating season while trying to secure cargoes amid reduced flows from the Gulf.
LNG-carrier transit through Hormuz increased after a June interim agreement between the United States and Iran, but remained well below pre-conflict levels. Qatar and the United Arab Emirates’ LNG loadings fell by 35 billion cubic meters from March through June compared with the same period a year earlier.
The waterway previously carried almost 20% of global LNG supply, with nearly 90% of those volumes destined for Asia and slightly more than 10% for Europe. The timeline for a full resumption of traffic remains uncertain.
