Europe Gas Prices Jump After Norway Gas Field Outage

Prices of European natural gas saw larger gains after a major supplier in Norway curbed output due to an unplanned outage.

Shipments from Norway may drop by almost 13% on Wednesday after the Troll field went offline from operational problems, according to network operator Gassco AS. Troll’s operator did not specify the field’s issues.

“Given the outage length is uncertain, this has added yet more risk to the benchmark price,” said Tom Marzec-Manser, an analyst for European gas and LNG at ICIS. The European benchmark, Dutch front-month gas, jumped as much as 9.6% at 105 euros a megawatt-hour after the outage.

The outage comes amid various risks on European gas prices as the region’s reserves are quickly depleting while demand is expected to remain robust during the winter and the upcoming summer.

Traders are also bracing for a possible sanction by the U.S. on Russia’s new Nord Stream 2 gas pipeline to Germany. The White House had already set the gas pipeline as its target should Russia invade Ukraine, Bloomberg reported on Tuesday.

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