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Rare Snow Blanketing Madrid Creates Energy-Market Chaos

  • Country’s day-ahead price rose to near record Asian LNG rate
  • Tight regional market, shipping constraints block LNG reloads
The Madrid skyline during a snowy day, on Jan 7.
The Madrid skyline during a snowy day, on Jan 7.Photographer: Marcos del Mazo/LightRocket/Getty Images
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Spanish natural gas prices surged to a record as the nation grappled with unusually cold weather that even brought a rare snowfall to Madrid.

The day-ahead price on Spain’s PVB gas trading hub has more than doubled since the start of the year and is near the record-high rates for liquefied natural gas in Asia, where cold winter temperatures are creating fuel shortages.