Global natural gas and LNG prices have soared in recent weeks – a bull run that seems to have no end in sight. A combination of factors has created tightness in supply, just as demand has increased in many places around the world, raising concerns both on the short and longer term among gas consumers.
Lower-than-normal storage inventories in Europe mean that the continent could end up dealing with a winter gas supply crisis, especially if it experiences a colder-than-average winter. At the same time, high gas prices have led to the restart of some coal-fired power generation, creating fears that, with gas currently uncompetitive against more polluting fossil fuels, this could hamper decarbonisation efforts in some countries, energy industry experts warn.
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