Rising gas prices tighten Europe's energy supply chain
Gas prices in Europe are on the rise due to unplanned restrictions at Norway's Troll field. This situation is impacting the availability of supplies, causing concern among traders and consumers in Europe.
Unexpected capacity restrictions at Norway's Troll field have led to an increase in natural gas prices in Europe, reports Bloomberg.
Traders are worried about supply availability, which is particularly significant during Norway's ongoing maintenance season. A 2.2% rise in futures contracts on Monday continues a trend that has persisted for four weeks.
Europe is facing the challenge of replenishing underground gas storage after a harsh winter. The fill level is averaging 34%. Analysts suggest that the EU will need about 25.8 billion cubic metres of gas more in 2024.
Unexpected disruptions in supply and increasing demand in other regions are adding to the complexities of the situation. Although gas supplies are ongoing, exchange prices remain volatile and react to any disturbances.
Key supplier
With the cessation of supplies from Russia, Norway has become a key supplier of gas to Europe.
Issues with external power supply at the Troll field, coupled with planned maintenance at the Nyhamna plant and the Aasta Hansteen field, are impacting supply stability, notes Bloomberg.
Dutch futures contracts increased by 1.2%, reaching $39 per megawatt-hour.
