Henry Hub moves higher on NS2 sanctions
The US benchmark for the price of natural gas on November 23 recovered ground lost in the previous session in spillover fashion due to US sanctions on a Russian gas pipeline.
The December gas delivery contract at the US Henry Hub was up 6.1% as of 12:28 GMT to trade at $5.08/mn Btu. The contract lost 5.5% in the previous session to close the trading day at $4.79/mn Btu.
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European prices have rallied in similar fashion. After the US market closed November 22, the US State Department announced it was imposing new sanctions on vessels associated with the Russian-led Nord Stream 2 natural gas pipeline.
“With today’s action, the administration has now sanctioned eight persons and identified 17 of their vessels as blocked property pursuant to the Protecting Europe’s Energy Security Act of 2019 in connection with Nord Stream 2,” the State Department said.
The pipeline is complete, though a formal start is pending final certification from German authorities. Berlin recently said the Nord Stream 2 consortium had not followed the appropriate German laws governing the pipeline and paused the certification process on its end.
Bulb, the latest UK energy company to buckle under the pressure from high commodity prices, made a specific reference to Nord Stream 2 when announcing November 22 it was going into special administration.