EU Gas Stocks Plummet to Record Low Ahead of Winter

Natural gas stocks in the European Union are at an all-time low for this time of year, according to data from Gas Infrastructure Europe (GIE). Storage facilities are less than 58% full, the lowest level since statistics began being kept in 2011. The current situation has revived memories of the 2022 energy crisis, which pushed up prices and cut industrial profits.

The EU now consumes less gas and obtains a larger share of its energy from renewable sources compared to 2022. However, after curbing imports of Russian gas, it has become more reliant on liquefied natural gas (LNG) from the global market, making it more vulnerable to supply disruptions. If storage facilities cannot be sufficiently replenished ahead of winter, when demand is higher, the EU may be forced to buy gas at substantially higher prices.

Wood Mackenzie analyst David Lewis warned that the low level of gas stocks has created a risky situation. 'If there is a very cold winter or a prolonged cold spell, some form of demand curtailment or price increase may be necessary, otherwise Europe will run out of gas,' he said.