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Europe’s benchmark natural gas prices rose early on Monday following an unplanned cut to capacity of the giant Troll gas field in Norway, the single largest supplier of gas to Europe.
Dutch TTF Natural Gas Futures, the benchmark for Europe’s gas trading, jumped by 2.2% at trade open in Amsterdam on Monday, before easing some gains to trade 1.2% higher at 11:30 a.m. local time.
The rise at the start of this week extends four consecutive weeks of weekly gains in European gas prices as the market is reacting to unplanned supply disruptions at a time when Europe races with time – and with Asia – to refill gas storage sites ahead of the 2025/2026 winter.
The unplanned cuts to Troll’s capacity in the North Sea comes ahead of planned extensive maintenance season at several Norwegian gas fields, which will reduce pipeline supply to Europe in the summer.
Currently, Norwegian gas supply is somewhat restricted as there is planned maintenance at the Nyhamna processing plant and the Aasta Hansteen field.
Thus, European countries will have to rely on more LNG cargoes to bring natural gas to the continent.
Last year, Troll produced record-high volumes of natural gas, up by 10% compared to the previous high from 2022, the field operator Equinor said early this year.
“With record-high production in 2024, the Troll field confirms its position as a pillar of Europe's energy security. The field contributes to a stable gas supply for millions of households and is important for European industry,” Kjetil Hove, Equinor's executive vice president for Exploration & Production Norway, said at the time.
Traders and analysts will be watching closely the pace of Europe’s storage refills in the coming months, as well as LNG demand in Asia and whether North Asian demand would rise and potentially compete for spot cargoes with Europe.
By Michael Kern for Oilprice.com
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