Europe Faces Winter with Lowest Gas Storage in 15 Years

Europe's gas storage levels have plummeted to their lowest point in 15 years, raising concerns over heating supplies for the coming winter. The storage facilities in EU member states are only 65% full, according to a recent report by The Wall Street Journal. This is the lowest level since 2007.

The shortage can be attributed to a miscalculation by European energy companies, who delayed gas purchases anticipating that Qatar would resume shipments after the war between Iran and the US. However, this calculation has gone wrong as fighting between the two nations has flared again, causing LNG prices to soar to their highest level in three and a half years.

European buyers now face stiff competition from Asian rivals for expensive cargoes just as winter approaches. The EU's decision to lower the storage target from 90% to 80% this year has compounded the problem. This policy change was influenced by repeated statements by US President Donald Trump that a deal with Iran was imminent.

Experts warn of potential price spikes or restrictions on heating supplies, while others argue that Europe is better prepared for winter due to reduced energy consumption. European gas consumption has fallen about 20% since 2022, thanks to increased renewable energy production and improved energy efficiency at industrial sites.