EU Gas Storage Levels Plummet Amid Middle East LNG Disruption
European Union gas storage levels have dropped to their lowest mid-August level in five years. According to Gas Infrastructure Europe (GIE) data, EU gas storage facilities were 60.8% full on Aug. 17, down from 73.6% a year earlier.
This is due to the ongoing disruption in Middle East liquefied natural gas (LNG) supplies, which are being diverted to Asia amid heightened tensions.
Analysts expect the bloc to fall short of its winter target, with Ole Dramhal from Rystad Energy Gas and LNG Markets predicting that EU storage will reach about 75% by Nov. 1, while Ronald Pinto from Kpler LNG and Natural Gas expects levels to reach about 77%.
The tighter supply outlook has also supported European gas prices, which have more than doubled year-over-year. The September Dutch TTF contract was trading at 62.11 euros ($71.90) per megawatt-hour (MWh) on Aug. 17, up 103% from 30.54 euros a year earlier.