Global LNG prices could shoot higher this winter as Europe holds its lowest stocks in years and North Asian buyers face increased competition with the Strait of Hormuz still closed, executives said
Global LNG prices could shoot higher this winter as Europe holds its lowest stocks in years and North Asian buyers face increased competition with the Strait of Hormuz still closed, executives said at an industry conference this week.
Europe will enter this winter more vulnerable than usual amid storage levels that are lower than last year, industry executives and analysts said at Gastech in Bangkok.
At the same time, the war on Iran has prevented Qatar and the United Arab Emirates from shipping liquefied natural gas through the Strait of Hormuz, leading to a loss of 36 million metric tons of supply this year, according to Shell.
"Right now, where we stand in Europe is at a historically low storage level heading into the end of fall," said Shell's President of Integrated Gas Cederic Cremers.
European Union natural gas stocks are currently 67% full, a record low for this time of year and far below an EU target of storage at 80% of capacity by December. Executives from Norwegian major Equinor said gas stocks could reach 75% full by November 1.
Unlike the Ukraine crisis in 2022, European countries did not rush to build stockpiles during summer to meet winter
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