“European gas surged higher amid concerns about the safety of Europe’s energy infrastructure,” analysts at Australia and New Zealand Banking Group (ANZ) said in their Australian Morning Focus report published early Wednesday.
“The leak in a gas pipeline connecting NATO members Finland and Estonia is suspected to have been caused by a deliberate act of destruction, according to Finland Prime Minister Petteri Orpo.”
“While the rupture of the pipeline is not significant for the European gas market, it raises questions about the security of supply at a time of heightened geopolitical risks.”
“Chevron has already been forced to shut down the Tamar offshore gas platform while the conflict’s proximity to the Suez Canal, a major shipping route for LNG to Europe, also raised the risk of disruptions to supply.”
“North Asian LNG prices were also higher amid the supply risks. This was compounded by fears of renewed industrial action at Chevron’s LNG facilities in Australia.”