Europe's Gas Storage at 17-Year Low Amid Soaring LNG Prices

Europe's summer gas storage has reached a 17-year low as stockpiling efforts for winter have effectively ground to a halt due to soaring liquefied natural gas (LNG) prices triggered by the Middle East war.

According to Bloomberg, the storage rate in European Union (EU) gas facilities stood at just 57.1% as of early this month, falling well short of the recent five-year average of 74%. This is the lowest figure since relevant statistics began in 2009, deepening concerns among governments as the heating season is only about two months away.

The usual practice of purchasing and stockpiling gas during the summer when prices are relatively low for use in the winter has been delayed this year due to LNG price surges. Disruptions in LNG supplies from the Middle East have led to an increase in Europe's imports of Russian LNG, with the EU paying a total of 5.96 billion euros ($6.5 billion) to Russia for gas in the first half of the year.