European gas prices continued to climb on Tuesday on concerns over imports of liquefied natural gas (LNG) from a major US plant in Texas. On Monday, gas prices had also already soared following weather forecasts suggesting colder weather was on the way to parts of Europe.
On the main gas market in Amsterdam, which is decisive for the rest of Europe, the price of gas rose by more than 10% on Tuesday morning, reaching almost 126 euros per megawatt hour shortly before 11 a.m. The price of TTF gas, however, still remains well below the highs of around 350 euros reached at the end of August, but it is more than four times higher than the average of recent years.
On Monday, gas was already 16% more expensive, as Europeans are expected to have to turn up the heat due to the threat of colder weather. The mild autumnal weather of the past few weeks had previously pushed the price down. Thanks to this, the heaters could be turned on later and the gas stocks replenished.
Sources say U.S. liquefied natural gas exporter Freeport LNG in Texas is still struggling with an outage that began in June. The company has reportedly warned customers that deliveries scheduled for November and December could be canceled as repairs and regulatory clearances are still underway to restart its plant.
This site previously accounted for about 15% of the US LNG supply. Falling gas supply is increasing competition in the market as Europe and Asia seek to secure gas supplies for the winter months, driving up gas prices.