On Monday, gas was sold for 83.4 euros per MWh. Just two days later, the price has jumped over 100 euros, an increase of almost 20 percent.
–
The last time the gas price on TTF was above 100 was on 12 May. Since then, the gas has gradually become cheaper, and for a few days it has even fallen below 80 euros (1978 CZK).
–
Last week, however, there was an explosion and subsequent fire at the LNG export terminal in Texas, USA, which accounts for up to 20 percent of US LNG exports.
–
A fire in the facility of the American company Freeport, which operates an LNG terminal in Texas.
Photo: Maribel Hill, Reuters
In addition, the terminal has recently become a major supplier for Europe, which is looking for alternative sources in an effort to cut itself off Russian supplies. This accident thus has a major share in the sharp rise in the European market in recent days.
–
In addition, the terminal’s operator, the US company Freeport LNG, has now announced that the production outage due to the fire will last much longer than originally expected.
–
In full operation until the end of the year
According to Reuters, the company initially thought that it would resume operations in about three weeks. However, he now expects the terminal to be out of operation at least until September, and will not be fully operational until the end of this year.
–
“We expect Europe to be the region most affected by this incident,” Reuters quoted analysts consulting firm Rystad Energy as saying.
–
Approximately 70 percent of Freeport’s exports in recent months went to the European Union and the United Kingdom. The largest importers this year are France, Turkey and the Netherlands.
—
