Natural gas prices in the U.K. and the Netherlands soared to record highs as concerns over tight supplies mount while demand increases.
Britain’s gas network is forecast undersupplied on Tuesday due to supply disruptions at U.K. facilities as gas-fired power generation climbed amid muted wind output.
At the same time, Hurricane Nicholas made landfall in Texas, threatening to disrupt liquefied natural gas facilities at a time when European traders are watching for signs of cargoes diverting back to Europe amid a seasonal lull in Asia. Europe’s record-high gas prices are catching up with those in Asia, which could make it a more attractive destination for LNG cargoes.
“Competition between European and Asian buyers to attract the needed LNG cargoes seems to have started, with no known limit,” Engie EnergyScan said in a note.
Norwegian gas capacity declined to the lowest level since June amid a fresh round of maintenance at production facilities.
