Europe's Gas Market Splits as LNG Favors Northwestern Countries

The European gas market underwent significant changes in 2025 when Russia stopped sending natural gas through Ukraine. The Oxford Institute for Energy Studies reported that this shift led to a widening price gap between countries with access to liquefied natural gas (LNG) and those without.

Countries close to LNG import terminals, such as France, Belgium, the Netherlands, and the United Kingdom, benefited from lower-priced supplies. In contrast, Central and Eastern European markets saw persistently higher prices due to reduced access to Russian pipeline gas.

The report noted that trading volumes increased 16% in 2025 compared to the previous year, with physical gas demand rising by 8%. This growth was attributed to the market's adaptability to new supply structures. The Netherlands-based TTF hub remained Europe's largest natural gas trading hub, with a significant increase in trading volume.

Belgium's ZTP hub also experienced sharp growth, driven by increasing LNG imports and eastward gas flows from neighboring countries. However, some Central European hubs saw declines in trading volumes due to changing trade routes following the end of Russian gas flows through Ukraine.