Europe on Brink of Gas Crisis as Storage Hits Historic Lows
The European gas storage situation is dire, according to an analysis by Wood Mackenzie. As of late July, inventories are at a record low, slightly above 50% capacity. This is a major concern for the upcoming winter season (2026/27), as demand for liquefied natural gas (LNG) in Asia has rebounded to 2025 levels.
The Strait of Hormuz blockage has also pushed spot prices over EUR60 per megawatt-hour, more than double their June trough. Wood Mackenzie projects that even under a best-case scenario where Qatar restores full capacity by September, European storage would reach at most 75% by November 1, compared to a five-year average of 90%. If the Strait remains blocked for two months, storage could fall below 70%, leading to further price increases and potential demand destruction in developing Asian economies.