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Ukraine war

Europe faces 40m ton gas shortage on Russia cutoff

Global prices could rise on a scramble to purchase and a shortage of carriers

A liquefied natural gas plant operated by Russia's Sakhalin Energy. Europe would struggle to fill the gap created by the cutoff of gas from Russia.   © Reuters

FRANKFURT, Germany/TOKYO/HOUSTON, U.S. -- Europe could end up short 40 million tons of natural gas -- around 10% of its annual consumption -- should Russian shipments dry up due to Moscow's invasion of Ukraine, pressuring the region to explore alternative sources of the fuel.

Natural gas prices in Europe rose Wednesday amid concerns that further combat escalation in Ukraine could prompt the U.S. and the European Union to ban energy-related transactions with Russian banks. Such deals remain exempt from sanctions. The benchmark Dutch TTF futures rose roughly 50% at one point, reaching a new high for the first time in two months.

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