EU LNG Storage Tanks Hit Record Low Ahead of Winter

The European Union is facing a looming crisis as its liquefied natural gas (LNG) storage tanks are only about 57% full, the lowest level for this time of year since 2009. This is despite EU officials' claims that they have plenty of import capacity. However, LNG's transportability means it can be redirected to Europe from other parts of the world, but this comes with a catch: Europe was not the only part chasing after LNG in 2022, and it's not the only one now.

The EU's storage facilities will likely face higher prices ahead as they prepare for winter. According to Goldman Sachs, if there is an average winter, their storage facilities will probably be only about a quarter full by late March. This is a concerning situation, especially given that Europe may be cutting it fine in terms of preparing for winter.

The EU has also eased planned restrictions on Russian LNG imports by allowing European companies to continue transporting and purchasing Russian LNG to buyers outside the bloc after January 1, 2027. However, this still keeps a ban on EU imports of LNG from Russia starting next year.