An explosion damaged a natural gas hub operated by Gas Connect Austria GmbH near Vienna, causing several casualties, disrupting the flow of gas to Europe and sending natural gas and power prices higher amid concerns on supplies, according to media reports.
Gas Connect said on its website that a technical fault is currently the assumed cause of the explosion at the Baumgarten natural gas station, which has been shut down in a controlled state and is offline.
A main distribution hub for imports from countries including Russia, Baumgarten transports the equivalent of a tenth of Europe's gas demand, according to Bloomberg News. It is the biggest gas reception point in Austria.
Gas Connect said Austria's natural gas supply can be covered for the "foreseeable future" after the incident, but transit through the country to the south and southeast regions has been negatively affected.
Following the explosion, natural gas and power prices rose in Europe, including Britain, Germany, France and the Nordic region, Bloomberg News reported. In the U.K., gas for immediate delivery jumped 35% to 92 pence per therm, its highest level in four years, according to The Guardian.
In Italy, the government declared a state of emergency for gas, according to Bloomberg News. The country relies on Russian flows for 30% of its demand.
The explosion injured 21 people, including Austrian citizens and employees of contractors from six other countries, Gas Connect said. The company and media reports said one person had died.
