Europe sounds winter gas alarm
Europe’s natural gas storage levels have fallen to their lowest ever for this time of year amid the loss of Russian pipeline gas and concerns over global LNG supplies.
Storage facilities across the EU are around 71% full, compared with a seasonal average of 87%, while Germany’s storage level has fallen to 57%. Europe’s growing reliance on LNG to replace Russian gas, combined with disruptions to supplies from the Persian Gulf due to the war with Iran, is increasing risks ahead of winter.
A severe winter or further supply disruptions could force Europe to purchase more LNG at higher prices. This could push up energy bills and inflation while weighing on economic growth. The EU has a 90% storage target, although it can be lowered to 80% under difficult market conditions. According to the International Energy Agency, nine EU countries hold a combined total of around 12 billion cubic meters of strategic natural gas reserves.
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