European natural gas prices continued to rise after the announcement of an unplanned capacity cut at Norway’s giant Troll field, further restricting flows from the region’s top supplier, enkorr reported, citing Bloomberg.
Benchmark futures rose as much as 2.2% on May 26, extending four straight weeks of gains.
Traders have become increasingly concerned about the availability of fuel supplies in recent times amid a long maintenance season in Norway and risks of rising demand in other gas-consuming regions it competes with.
Europe is under pressure to replenish its vast underground storage facilities after last winter left them more depleted than usual, and unexpected outages or surges in demand are complicating its efforts to attract more flows.
While pumping is still ongoing, prices have been volatile in response to news of the outages and have recovered more than half of April’s losses.
Norway has become Europe’s top gas supplier after russia cut pipeline supplies following its full-scale invasion of Ukraine.
Its Troll field has been hit by external power supply problems that began last week, while scheduled maintenance at its Nyhamn processing plant and Aasta Hansteen field is also ongoing.
At 9:06 a.m. in Amsterdam, the price of monthly futures in the Netherlands, the European gas benchmark, rose 1.2% to EUR 36.90 per megawatt-hour.
As the Ukrainian News agency earlier reported, exchange gas prices in Europe rose 1.6% to USD 437.3 per 1,000 cubic meters on May 21.
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