EU Seeks Gas Demand Cuts as Prices Soar Above 140% Year-on-Year
European natural gas prices have skyrocketed in recent months due to a combination of factors. The ongoing crisis around the Strait of Hormuz has disrupted LNG flows, while Europe and Asia compete for available cargoes. Qatar Energy has extended force majeure status on LNG deliveries to Edison until December, affecting Qatari exports.
The European Commission has called on governments to continue or reinstate measures that could curb natural gas and electricity demand for as long as necessary. This includes incentives for energy saving, limiting consumption during peak hours, better management of industrial demand, faster deployment of renewable energy sources, and mechanisms that facilitate storage filling.
On September 21, EU storage facilities stood at approximately 70.1%, with about 794 TWh of natural gas in reserve. This percentage was roughly 15.6 percentage points lower than the previous five-year average, which for the same date sat near 85.7%. The Commission emphasizes that security of supply remains safeguarded and that the European system is more resilient than in 2021-2022.