A source at the Energy Development Center said that the US hurricane season could become a new threat to the European gas market due to disruptions that could occur in the supply of US liquefied natural gas.
Research firm Rystad Energy has indicated that the hurricane season in the United States is gaining momentum. Its peak usually falls between mid-August and mid-November.
The source added: “The impact on the market is usually related to the amount of damage caused, and since the US has become the largest supplier of liquefied natural gas and petroleum products to Europe, the potential consequences could be quite significant.”
The source noted that any major hurricane, such as last year’s Hurricane Ida, could disrupt LNG shipments from export terminals in the Gulf of Mexico. This could reduce LNG supplies to the world market by about 300 million cubic meters per day. In addition, production (of oil) from offshore platforms in the Gulf of Mexico is likely to decline.
In recent years, major hurricanes have caused production disruptions of 600,000 to 700,000 barrels per day.
Source: RIA Novosti