(Montel) LNG prices for delivery next month in Europe have reached a new one-year high, while competition for the supply of the fuel could “increase sharply in the coming months”, Australian bank ANZ said .
The delivery price of liquefied natural gas in northwest Europe in December increased by USD 0.10 and was assessed on Monday evening at USD 14.25/MMBtu (EUR 46.08/MWh), its highest high level since November 9, 2023, according to data from Spark Commodities.
Chilled fuel prices followed the rise in gas prices on the benchmark TTF exchange, which also reached a new almost one-year high of EUR 46.90/MWh (USD 14.50/MMBtu) on Monday , in a context of geopolitical concerns linked to Russia and falling temperatures.
Gas prices in Europe have been rising since last week when Austrian energy supplier OMV announced that Russian giant Gazprom could cut supplies due to a dispute over payments, which happened on Saturday. The physical routing of flows nevertheless remained almost unchanged, other buyers having resumed purchases of Russian gas.
“Growing tensions”
“At the moment, Gazprom continues to send gas to other parts of Europe, but growing tensions are making the situation fragile,” ANZ Bank said.
Some observers fear that the authorization given Sunday evening by the White House to kyiv to use long-range American missiles to strike Russia could lead to an escalation in the war, with the target of new energy infrastructure.
Europe is also bracing for a cold snap, which could increase gas consumption, as Montel reported Monday evening.
Asian LNG prices stood at USD 14.65/MMBtu (EUR 47.37/MWh) on Monday, slightly higher than the European TTF price.
Several LNG tankers have been diverted from their original destinations in Asia to Europe.
Europe, however, remains the most profitable destination for U.S. cargoes this winter, including freight costs, according to data from Spark Commodities.
Swiss
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