European Gas Reserves Plummet Amid Iran War Fallout

Europe's gas reserves are at their lowest level in history, according to Wood Mackenzie, a leading energy research firm. The continent is facing a severe shortage due to lower global production and depleted reserves caused by the Iran war.

Natural Gas (LNG) accounts for around 40% of Europe's total energy consumption, with an estimated 89% of its overall gas supply coming from outside the EU in 2025. European inventory levels are at just over 50%, a historically low level, and analysts warn that this will lead to elevated prices through winter and into 2027.

Massimo Di Odoardo, Wood Mackenzie's vice president of gas research, stated: 'Low European inventories, strong Asian demand, and limited new LNG supply growth almost guarantee elevated prices through this winter and into 2027.'

The UK relies heavily on imports, with only around 5% of its annual total demand being stored locally. The country's energy mix is composed of around a third natural gas, with less than half being domestically sourced.