Europe Faces Record-Low Gas Storage Ahead of Chilly Winter

The 2026-2027 winter in Europe is shaping up to be a challenging one for natural gas storage, with levels at a 20-year seasonal low. According to data from Gas Infrastructure Europe, European gas storage is only 63% full, well below the five-year average for the bloc.

The main culprit behind this shortage is the disrupted Qatari LNG supplies to Europe, caused by the Iran war and the Strait of Hormuz shipping bottlenecks. This has led to fierce competition from Asia for LNG supply, resulting in European benchmark prices surging to multi-month highs.

Front-month TTF futures are currently trading at €65.00 to €69.00 per Megawatt-hour (MWh), equivalent to approximately $22.50, $23.50/MMBtu. Analysts warn that Europe risks missing its target for gas storage ahead of the winter, with the Netherlands becoming the first EU member state to warn it would miss its target.