European Gas Reserves Plunge to Historically Low Levels

Europe's gas reserves are at an historically low level of just over 50% for this time of year, according to research from Wood Mackenzie. This has analysts warning that the continent is approaching energy crisis territory due to lower global production and depleted reserves caused by the Iran war.

Natural gas accounts for around a fifth (21%) of total energy consumption in Europe, with liquified natural gas (LNG) representing 40% of that usage. The majority of European gas supply comes from outside the EU, including the UK, which amounts to an estimated 89% of the continent's overall gas supply.

Wood Mackenzie's vice president of gas research, Massimo Di Odoardo, stated that '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 natural gas accounting for around a third of the country's overall energy mix. The majority of the UK's LNG comes from Norway, but the damage to Qatar's Ras Laffan plant, which was damaged by Iranian missile strikes in March, is expected to take years to fix fully.