Gas hub. Archive photo
The peak of hurricane season in the U.S. could become a new threat for the European natural gas market due to the instability of supplies of American liquefied natural gas (LNG), said RIA Novosti the experts of the Centre of energy development (CRA).
As noted by research firm Rystad Energy, in the United States is starting to gain momentum hurricane season. Usually its peak is in mid-August to mid-November. “The effect on the market depends on the amount of damage caused, but as the United States became the largest supplier of LNG and petroleum products in Europe, the potential consequences can be significant,” commented the situation in CRE.
Experts explain that a strong hurricane, similar to last year, dubbed “IDA” may cause the shipment of liquefied natural gas export terminals in the Gulf of Mexico. This may reduce the supply of LNG to the global market of about 300 million cubic meters per day (regasificadora form).
“It is also likely decline in production (oil – ed.) on platforms in the Gulf of Mexico. In years past major hurricanes lead to disruptions in the amount of 600-700 million barrels per day,” they appreciate.
On Wednesday Rystad with reference to the national centre for the USA track hurricanes (NHC) reported that “meteorological activity,” developing now in the Atlantic ocean, with a probability of 30% will develop into a tropical storm in the next five days. And the National oceanic and atmospheric administration (NOAA) in early August, said that the current hurricane season is expected to be more intense than the average in previous years.
NOAA predicts six to eight hurricanes, of which three to five major this season. “One major hurricane can cause disruptions in shipments of LNG from the Gulf of Mexico for one to two weeks. In the event of damage to any LNG plants consequences for the gas market will be longer,” notes also CRE in a separate comment in the messenger Telegram.