Analysts Warn of Potential LNG Supply Disruption Impacting Europe and Asia

Analysts from ING have highlighted concerns over potential disruptions in Middle Eastern energy flows, which could intensify competition for liquefied natural gas (LNG) supplies between Europe and Asia. According to Jin10, approximately 20% of global LNG supply is at risk, potentially exerting significant upward pressure on European gas prices, particularly if European gas storage levels fall below 30% at the end of the heating season. Warren Patterson and Ewa Manthey noted that while LNG export capacity has increased and more capacity is expected to come online, especially from the United States, it may not be sufficient to offset potential supply losses from the Persian Gulf in the short term. The benchmark TTF gas contract price surged by 24%, reaching 39.73 euros per megawatt-hour.