Europe's Gas Crisis Spreads as Middle East Conflict Disrupts LNG Exports

The ongoing conflict in the Middle East has disrupted LNG exports from the region, particularly from Qatar. This has forced QatarEnergy to extend force majeure on deliveries to European and Asian customers.

Italy's Edison alone has seen 29 cargoes affected since April, representing approximately 3.8 billion cubic meters of gas. As a result, buyers are looking beyond spot purchases and seeking more diversified supply sources.

Europe normally enters autumn with a substantial cushion in storage before heating demand rises. However, this year's storage is at roughly 65%, while European gas prices have risen to around €75/MWh, their highest level in over three years.