U.S. LNG facility explodes, European gas prices soar on news

　　On the morning of June 8, local time, one of the largest liquefied natural gas (LNG) export terminals in the United States exploded, and European natural gas prices rose sharply
.

　　After the explosion, Freeport LNG, the operator of the facility involved, said the Texas-based LNG facility would be closed for at least three weeks, during which time the U.
S.
would lose about a fifth of its liquefaction capacity
.

　　The Freeport export terminal has traditionally shipped most of its cargo to Japan and South Korea, but the shutdown will affect Europe
.
Europe has been moving LNG away from the eastern U.
S.
due to rising natural gas prices
.
Data intelligence firm ICIS believes the shutdown for at least three weeks will cost around 940,000 tonnes of LNG exports
.

　　Although Europe should be able to make up for its loss of gas storage
.
But analysts say risks remain if the shutdown is prolonged
.

　　The news sent U.
S.
natural gas markets lower as traders expected the shutdown to free up supplies and help rebuild U.
S.
inventories to meet winter demand
.

　　European natural gas prices rose sharply on the 9th, with wholesale gas prices in Europe jumping more than 10% to 88 euros per megawatt-hour (MWh), while the British July delivery price surged a quarter to 163 pence per 100,000 British thermal units
.

　　Asia's benchmark for LNG, the Platts Japan-Korean Marker Natural Gas Index JKM (Japan-Korean Marker), rose 7.
8 percent to $1.
694 at $23.
486 per million British thermal units (mmBtu) as assessed on June 9
.

　　Over the past few months, about 70% of Freeport's export terminal's monthly supply has gone to the EU and the UK
.
France, the UK, Turkey and the Netherlands were the biggest importers of freeport LNG in Europe this year
.