European Gas Storage Levels Plummet Ahead of Winter 2026/27

Europe's gas storage levels are alarmingly low ahead of winter 2026/27, according to Wood Mackenzie's analysis. Storage across Europe stands at just above 50% as of late July, a historically low level for this time of year.

This is due to a combination of factors, including renewed disruption in the Strait of Hormuz and increased Asian LNG demand, which has sharpened competition with Europe for available cargoes. Additionally, there is limited new LNG supply growth over the next 12 months, with Qatari developments not expected back at full capacity before 2H27.

Even under a hypothetical 'best case' scenario assuming Qatar reaches full operational capacity by end of September, excluding damaged trains, Wood Mackenzie's analysis suggests European storage will only reach 75% by November. This is significantly below the five-year average of 90%. If the Strait remains closed for two more months, storage levels could drop to below 70%, leading to further price increases.

Massimo Di Odoardo, Vice President of Gas and LNG Research at Wood Mackenzie, warns that 'low European inventories, strong Asian demand and limited new LNG supply growth almost guarantee elevated prices through this winter and into 2027.'