European natural gas prices held gains as escalating strikes in Australia add to concerns about supply disruptions from Norway and a major export facility in the US.
Benchmark futures rose as much as 3.2% on Thursday, after jumping to the highest in over two weeks in the previous session.
Liquefied natural gas workers at two Australian plants operated by Chevron Corp. have begun ramping up a campaign of industrial action after they started partial strikes last Friday. The company’s requests for a labor regulator to intervene won’t be heard until next week. Though LNG exports haven’t yet been affected, lengthy walkouts increase the risk of disruption, keeping markets on edge.
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For now, Europe is well-stocked for the upcoming heating season, and its fuel consumption remains weak after last year’s energy crisis led to severe cuts. Gas prices have eased significantly from 2022 records, but they are still elevated compared to historic averages, highlighting the region’s fragility.
Traders remain nervous amid heavier-than-expected maintenance in the continent’s top gas provider, Norway. On top of that, the Freeport LNG plant in Texas has canceled at least three cargoes in recent days due to an outage, adding pressure to an already volatile market.
Dutch front-month futures, Europe’s gas benchmark, traded 1.2% higher at €37.25 a megawatt-hour by 8:37 a.m. in Amsterdam. The UK equivalent added 1.2%.
