Norway’s reduced supply of gas to Europe and the United States is creating problems in both continents as natural gas prices picked up on Monday morning.
Amid concerns about supply due to unresolved labour issues the prices of natural gas around Europe and U.S. rose on Monday.
Gas Prices Appreciates Around Europe And U.S.
Early on Monday in the United States, prices at the Henry Hub rose by 2.6%
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The front-month-futures at the Dutch TTF hub in Europe, increased by 1.9% to $35.08 (32.65 euros) per megawatt (MWh) as of 10.35 a.m.
European gas prices rose by 4% at opening, after Norwegian operators on Saturday halted supply from the giant Troll gas field due to regular maintenance.
Since the war began, Norway replaced Russia as the single-biggest gas supplier to Europe.
The lowered supply from Norway, has pushed European prices higher, together with still unresolved issues between unions and Chevron at the U.S. supermajor’s Australian LNG facilities, Gorgon and Wheatstone.
Lingering Workers Union Strike
Workers’ union in Australia, last week reached an agreement with Woodside Energy over payment and work conditions that averted a strike at Woodside’s North West Shelf facilities.
This sent European gas prices tumbling on Thursday. But the threat of strikes at Chevron’s facilities hasn’t been eliminated yet.
On Monday, the workers voted to allow their unions to call strikes if necessary. The unions must give Chevron a notice of seven working days ahead of an industrial action.
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Chevron representatives said the company continued with negotiations “as we seek outcomes that are in the interests of both employees and the company.”
LNG Drops In Europe
Meanwhile, European LNG imports slumped last week by 18% with more cargoes headed to Asia, according to Kpler vessel-tracking data reported by Montel.
Gas demand in Europe is still depressed, and gas storage facilities are already more than 90% full, well ahead of the EU deadline for reaching that target by November 1.
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