Europe gas prices jump on strike threat in Australia
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The news: European gas futures soared as much as 40% intraday over the possibility of workers strikes at the Australian liquefied natural gas (LNG) facilities of Woodside Energy and Chevron.
The numbers: Benchmark gas prices rose as much as 40% intraday to top 40 euros, before settling 28% higher on Wednesday. Analysts estimate the Western Australian LNG facilities collectively account for around 11% of monthly exports globally.
The context: Most of Australia's LNG exports go to Asian buyers including China, Japan, South Korea and India. Workers at the Chevron and Woodside facilities in Australia have voted to strike, which could disrupt LNG exports from the country, tightening the global market for the fuel and forcing Asian buyers to bid higher for supplies.
