Europe battles Asia for natural gas
The article discusses the impact of navigation disruptions in the Strait of Hormuz on liquefied natural gas prices. The escalation of fighting between Washington and Tehran has caused prices to surge sharply, with the index exceeding 62 euros per megawatt-hour—an increase of approximately 49% since late June. During the same period, oil prices have risen by 20%. Meanwhile, Asian countries such as Pakistan, Bangladesh, and India are moving to purchase larger quantities of spot gas at higher prices to meet their summer demand, putting additional pressure on Europe. Europe had been hoping to delay buying its needs and faced significant challenges in increasing its stockpiles before winter. The European Union is struggling to secure cheaper gas supplies, still heavily dependent on Russian gas, which accounted for 17% of its sources in the first half of the year. Despite the rising costs, Europe is working to ensure its reserves, as plans are underway to stop Russian gas imports by 2027.
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