Europe Faces Lowest Gas Reserves in More Than 15 Years

The EU could enter the upcoming heating season with its lowest gas reserves in at least 15 years, according to the Financial Times.

Energy consultancy Wood Mackenzie estimates that gas storage facilities will be only 76% full by the end of the restocking period, which runs from April to October.

The low inventory levels are attributed to a cold winter and disruptions to liquefied natural gas (LNG) supplies during the conflict between the US and Iran. The fighting disrupted shipments through the Strait of Hormuz and reduced production in Qatar and the United Arab Emirates.

The European Commission, however, says current storage levels do not pose an immediate threat to the bloc's energy security. It has recommended that member states fill storage facilities to at least 80%, with a minimum target of 75%. In previous years, the target was 90%.

Analysts warn that if LNG supplies from the Persian Gulf are not restored quickly enough, Europe could face greater price volatility this winter.

The outlook could also be complicated by the EU's planned ban on Russian LNG imports from January 2027. Russian LNG currently accounts for about 14% of the bloc's liquefied natural gas imports.

(ft, est)