MET Group Warns of Europe's LNG Contract Crisis

European gas prices have skyrocketed this year due to a combination of factors. The war in the Middle East has effectively cut off about a fifth of the world's liquefied natural gas flows, making it harder for European countries to secure long-term contracts.

The head of Swiss energy company MET Group warned that Europe needs more long-term LNG contracts to avoid energy shocks. This would help hedge against soaring prices and reduce reliance on flexible spot cargoes, which are increasingly being snapped up by Asian buyers.

As a result, the competition for these spot cargoes is expected to intensify this winter, potentially leading to even higher prices in Europe.