Supply blows rock European gas market

Russian reductions compound US LNG outage as continent seeks relief in the short and longer term

Russian state-controlled gas firm Gazprom has roiled the European market by announcing two cuts to maximum flow levels through its Nord Stream 1 pipeline this week, citing compressor issues. The supply reductions come on the back of a cut in US LNG export capacity due to a fire at the Freeport LNG export facility on Texas’ Gulf of Mexico coast. The benchmark northwest Europe TTF front-month contract on the Ice exchange jumped by almost 45pc in just two trading days, from €83.40MWh ($86.90/MWh) on Monday to over €130/MWh by the end of Wednesday, before rising further to €145/MWh+ in Thursday morning trade. In the wake of mounting supply concerns, Centrica—the UK’s largest gas utility—has stru