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EU gas surges on disturbance to Russian shipments

Europe faced a tightening squeeze on natural gas after some Russian supplies reversed direction and Algeria stopped shipments to Spain.

A pressure gauge on pipework at the Comprehensive Gas Treatment Unit No.3 at the Gazprom Chayandinskoye oil, gas and condensate field in the Lensk district of the Sakha Republic, Russia, on Oct. 11, 2021. Foto: Bloomberg photo by Andrey Rudakov

Benchmark gas futures surged as much as 15%, before paring those gains as traders weighed lower prices in Asia and Russia's promises to boost supplies against disruptions in some parts of Europe. The market was roiled in early trading as Russian gas started flowing eastward from Germany to Poland, reversing the usual direction. Spain is also getting less gas after a 25-year transit deal to ship Algerian gas via Morocco expired.

European gas futures broke records several times this year as Russia capped flows to the region just as cargoes of liquefied natural gas were diverted to Asia. Soaring energy costs helped send euro-zone inflation to a 13-year high in October, fueling concerns about an economic slowdown. President Vladimir Putin has promised more gas supplies to Europe, but that has yet to flow...

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