TTF Gas Hits $92.95 as Middle East Tensions Weigh on Energy Markets

Key facts

• Europe's benchmark natural gas prices are above 80 euros per megawatt-hour.
• The Dutch TTF gas price rose 0.3% to $92.95 (80.545 euros) per MWh.
• Prices are near their highest levels since the 2022-2023 crisis.
• Middle East tensions have increased competition for global LNG cargoes.
• Spot LNG prices in Northeast Asia rose to $28.40 per MMBtu.
• Europe is heading into winter with low gas storage levels.

Europe's benchmark natural gas prices remained above 80 euros per megawatt-hour early Wednesday, approaching levels seen during the 2022-2023 crisis, as concerns mount over winter supplies due to low storage and ongoing Middle East conflict. The front-month price for Dutch Title Transfer Facility (TTF) gas rose 0.3% to $92.95 (80.545 euros) per megawatt-hour as of 9:15 a.m. in Amsterdam. The benchmark has stayed above the 80-euro threshold this week, following a 6% surge on Monday. Risks to oil and gas supply in the Middle East have intensified, particularly after Saudi Arabia shut down its key East-West oil pipeline, which bypasses the Strait of Hormuz. This has crippled LNG supply from Qatar and sent gas and LNG prices soaring in Europe and Asia, increasing competition for available global LNG cargoes that do not traverse sensitive chokepoints. Spot LNG prices in Northeast Asia have climbed to $28.40 per million British thermal units (MMBtu), a $2.70 increase from the previous week, according to Energy Intelligence. ING's commodities strategists Warren Patterson and Ewa Manthey stated that the escalation in the Middle East is diminishing hopes for increased LNG flows from the Persian Gulf, leaving the global LNG market tight as winter approaches. They noted that despite favorable JKM-TTF spreads suggesting Europe should attract spot cargoes, the region may struggle to meet its 75% storage target before winter.