QatarEnergy force majeure and low EU storage lift European gas prices

Dutch TTF rose in early trading as QatarEnergy’s extended force majeure on LNG shipments to Italy, summer heat and EU storage around 49% full heightened supply concerns ahead of winter.

Summary

European natural-gas prices rose in early trading as QatarEnergy’s extended force majeure on LNG deliveries to Italy added to supply uncertainty, while EU gas storage remained about 49% full and extreme heat increased cooling demand. Edison said the latest notice keeps 21 LNG cargoes under force majeure across the April-to-early-September delivery period, with the affected volumes totaling about 2.7 billion cubic meters of natural gas. ANZ analysts said global LNG exports rose in June to their highest level since March, but lingering uncertainty over Persian Gulf LNG supplies kept traders cautious. Edison has said 14 of the 21 affected cargoes had already been replaced and that it expected no impact on end customers.

Terms & Concepts
  • force majeure: A contractual clause that excuses or delays obligations when extraordinary events disrupt supply.
  • Dutch TTF: Europe’s benchmark natural-gas trading contract.
  • spot market: A market where commodities are bought for near-term delivery rather than under long-term contract.