Natural Gas Prices Soared With Rising Utility Costs In The Global Market

Hamburg, Germany- European Natural gas costs accelerated as producers worry about what to expect when Russia's Nord Stream pipeline finishes maintenance. The pipeline is closed on 11th July and will likely resume after ten days. However, Russia will not completely return the connection to Germany afterward. Through Nord Stream and Ukraine, conveyances from Gazprom PJSC will remain curb for a long time.

Natural Gas drove up European power prices, and Liquefied Natural Gas futures for delivery at Title Transfer Facility (TTF) in the Netherlands averaged USD 51.88 per MMBtu as of 13th July. Utility costs increased in the European market with gas supply disruption, especially those engaged with import and transit of Russian gas, are among organizations that have endured the great shot such a long way from rising European Natural Gas costs.

As of 13th July, the Henry Hub spot prices of Natural Gas rose from USD 5.63 per MMBtu to USD 6.63 per MMBtu. To a great extent, refining, chemicals, compost, and industrial companies have had the option to pass on higher Natural gas costs through product costs. Yet, they might find it more challenging to increase prices further without causing decreasing demand.

In Norway, a halt in production at the Sleipner field hit the supplies of Natural Gas to their lowest this week, affecting the prices of Petrochemicals in the region. The outage was due to a gas leak on 13th July in the Norwegian North Sea.

According to ChemAnalyst, the prices of Natural Gas will increase in the upcoming weeks, affecting the Petrochemical market. US Natural Gas futures will jump, and forecasts for hotter weather will increase the demand for Natural gas. The gas price will jump despite an overall rise in production rate and the ongoing turnaround at the Freeport liquefied natural gas (LNG) export plant in Texas, which will leave more fuel in the United States for utilities to refill low storage.