Natural Gas Crisis in Europe

Europe is facing a gas crisis. Natural gas prices reached record levels due to the fire in the facility, which makes 16 percent of the USA's LNG exports. A spokesperson for the company stated that the facility will remain closed for at least three weeks.

Gas prices rose in Europe. The main US export terminal supplying to Europe will remain closed for weeks due to the sudden explosion. After this event, natural gas showed a rapid rise from the six-day decline level. Forward prices of natural gas traded in Amsterdam, the capital of the Netherlands, increased by up to 13 percent. It has been announced that The Freeport liquefied natural gas export terminal in Texas will remain closed for at least 3 weeks due to the fire at the facility. The facility handled one-fifth of the LNG exported from the United States. The shutdown came during the closure of pipelines to Europe's main suppliers. Major facilities in Norway enter annual maintenance this week, while gas from Russia is below capacity as European buyers refuse to pay in rubles. Experts underlined that the extent of the damage to the facility is unknown, but if the damage caused by the fire turns out to be difficult to repair, it has the potential to temporarily shut down 16 percent of the total US LNG export capacity. Although the natural gas consumption of consumers has decreased with the warming of the weather, it is stated that as the prices approach historical averages, companies can use their stocks that they have improved.