A cold snap across Spain is expected to last through mid-January has resulted in natural gas prices more than doubling in the last week, according to Bloomberg.
LNG prices trading at Spain's Punto Virtual de Balance (PVB) gas trading hub hit a record 51.55 euros ($63.13) a megawatt-hour this week, or $18.54 per million British thermal units as the nation grapples with dangerously cold weather and snowfall in Madrid.
Spain has one of the largest LNG terminals in Europe. "Surging prices, coupled with a lack of available LNG vessels for longer journeys between Europe and Asia, will probably limit cargo exports from the nation's ports and further tighten the supply of the fuel," Bloomberg noted.
Frigid weather in China has resulted in surging LNG prices as well. This week Beijing meteorological station recorded one of the coldest temperatures in decades this past week, sending power demand through the roof. LNG imports in China last month were at record highs as demand to heat homes has surged.
A possible theory behind the wicked cold weather could be the sudden stratospheric warming splitting the polar vortex into two, allowing Arctic temperatures to pour into Europe and Asia.
