European Natural Gas Supplies Plummet Amid Low Consumption

Natural gas supplies to Europe are weakening, with liquefied natural gas (LNG) deliveries to EU countries at their lowest level since last October. This includes LNG imports into the United Kingdom, which were also at a low point since December 2021.

Natural gas supplies from the North Sea are lower due to planned and unplanned outages, according to Gassco's statistics. The high levels of natural gas from the North Sea and LNG helped fill EU storage facilities quickly this year, with them being filled more than two and a half months ahead of schedule.

Given current storage levels and low natural gas consumption, demand is gradually declining. Statistics from Argus show that LNG deliveries in August were at their lowest level since last October. Consumption in the five countries with the highest natural gas use - the United Kingdom, the Netherlands, Germany, France, and Italy - was also at its lowest level since August 2016.

Industrial consumption across the EU has yet to return to growth after high prices led to reduced consumption over the past two years. Another reason for low gas consumption is higher electricity generation from renewable energy sources, which is reducing gas use for power generation. Relatively warm weather is also a factor, expected to persist until at least mid-month.