EU Gas Storage Levels Plummet Amid Intensifying LNG Competition

European Union gas storage facilities are currently filled to about 66%, which is the lowest level for this time of year in nearly two decades. This comes as a concern, especially given that stock levels are significantly below the five-year average, exceeding 80%. To reach even the minimum storage-filling target of 75%, Europe needs to purchase more than $8.1 billion worth of gas at current prices.

According to OilPrice, competition for liquefied natural gas (LNG) has intensified due to a reduction in available global supply. The war in the Middle East has disrupted LNG deliveries from Qatar, with cargoes remaining blocked in the Strait of Hormuz.

Kpler lead LNG analyst Go Katayama notes that a colder winter could result in global competition for fuel. ING strategists Warren Patterson and Eva Manthey expect this competition between Europe and Asia to intensify as winter approaches in the Northern Hemisphere, especially if Qatari LNG remains largely absent from the market until the end of the year.