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European natural gas prices shot up Monday, climbing as much as 45%, after Qatar halted production at its huge North Field liquefied natural gas (LNG) plant amid rising tensions in the Middle East.
Prices at Europe’s main trading hub in the Netherlands hit around €46 per megawatt-hour, while the U.K.’s benchmark surged alongside it. Traders saw wild swings throughout the day as markets reacted to the news.
QatarEnergy confirmed the pause in production following an attack on its facilities, though details on the damage or how long production would remain stopped were limited. The disruption comes after U.S. and Israeli strikes on Iran, raising worries about the safety of global energy supplies.
The Strait of Hormuz, a key shipping route controlled by Iran, carries about 20% of the world’s oil and 38% of seaborne crude. Analysts warn that any slowdown there could further delay LNG shipments from Qatar, which provides roughly 12%–14% of Europe’s imports. Satellite data showed oil tanker movement nearly stopped over the weekend as shipping companies took precautions.
Even though Europe doesn’t rely solely on Qatari gas, the ripple effects could be felt globally. Any disruption in Asia could spark a scramble for LNG cargoes, pushing prices higher worldwide, including in Europe.
Europe’s low gas storage is adding to the pressure. Storage across the EU is below 30% capacity, down from around 40% at the same point last year. Germany and France are among the most exposed, with levels at roughly 20% each.
The jump in gas prices could squeeze households and businesses as winter heating wraps up, with fears that further escalation in the Middle East could send energy costs even higher.
*Source: Euronews
