European natural gas prices are rising as the continent prepares to replenish its storage reserves. The benchmark Dutch TTF contract increased by 2.7% to 54.23 euros a megawatt-hour amid concerns over supply.
Gas storage levels are currently at their lowest in years, making the upcoming stockpiling season particularly challenging. Europe will face increased competition with Asian buyers for limited supplies, exacerbated by disruptions to energy flows stemming from the conflict in Iran.
Analysts warn that continued halts to Qatari LNG imports to the EU, lasting another three months, could cause a significant surge in natural gas prices. A prolonged six-month war in Iran could even lead to conditions mirroring the 2022 energy crisis.
The war is impacting the entire liquefied natural gas supply chain, further complicating efforts to secure adequate energy resources for the coming months.