French LNG supply disrupted by weeks-long strike

By Forrest Crellin

PARIS (Reuters) -Workers at French LNG terminals will continue to block ships from discharging until their salary demands are met, two representatives with the CGT union said on Friday.

The blockade at three out of four of the country's terminals has reduced gas outflows from one of Europe's top gas buyers and lifted prices this week.

LNG terminal operator Elengy has invoked force majeure at its three sites in France because of the month-long strikes and said no ships can discharge until October 2. 

Reduced deliveries from French LNG terminals contributed to a 1.3% rise in the price of the Dutch TTF front-month benchmark European gas contract on Thursday, though the impact was muted on Friday due to increased flows from Norway, where a maintenance period is ending, analysts said.

Unions could continue their blockades beyond October 2 if conditions are not met, the union representatives said, potentially further lifting prices.

France is Europe's fourth largest gas importer, with much of the supply sent to neighbouring countries. Its exports have jumped since 2022 when Russian piped gas to the European Union was shut off following the invasion of Ukraine.

France is also the largest importer of Russian LNG in Europe, buying around 4 million tons in the first eight months of the year with a significant portion going through Elengy's Montoir terminal on the west coast.

Both of Elengy's Fos terminals in the south are currently blocked from sending out gas, with reduced outflows from the Montoir terminal, a spokesperson said.

The last ship to dock and offload in Fos was on September 12 while the last to discharge in Montoir was on September 21, LSEG data showed. Three full LNG carriers are currently anchored near the ports waiting to discharge, LSEG data showed.

(Reporting by Forrest Crellin and America Hernandez in Paris and Nora Buli in OsloEditing by David Goodman, Kirsten Donovan)