Natural gas prices in Europe rose more than 10% on Friday as strikes at LNG facilities in Australia hit, reducing global supplies.
The natural gas price per megawatt-hour for October contracts in Europe, trading on the Netherlands-based virtual natural gas trading point (TTF), increased 10.5% to €36.20 ($38.70) on Friday from €32.75 ($35) at Thursday’s closing.
Chevron’s LNG facilities in Australia provide about 5% of the global LNG supply.
A strike by employees at Chevron’s LNG plants in Australia demanding improved working conditions and wages led to a rise in natural gas prices in Europe.
Australia holds the title of the world’s largest LNG exporter, with 80.9 million tonnes of LNG exported last year, accounting for a 20.1% share of the global LNG trade.
Although Australia only provides a small quantity of LNG directly to Europe, the region’s increased reliance on LNG imports has come as a result of the dramatic decline in Russian gas exports to the continent after the start of the Russian-Ukrainian War.
As a result, LNG supply difficulties on the global market directly influence gas prices in Europe, exacerbating supply uncertainties and resulting in significant price volatility.
