Europe's Gas Storage Crisis Deepens as LNG Diverted to Asia

The European Union is facing a gas storage crisis as winter approaches. According to energy market intelligence company Montel, EU storage sites were only 5% full at the end of July, compared to around 12 percentage points below last year's level and 16 percentage points below the five-year average.

The shortage is attributed to increased volumes of liquefied natural gas (LNG) from Gulf countries being diverted to Asia. This shift has left Europe scrambling to refill its storage facilities, with Montel estimating that it will not reach its target of having 90% full by winter.

European Commission spokesperson dismissed concerns about possible winter shortages, saying the current situation was 'not extraordinary at all.' However, gas market expert Joachim Endres warned that continued disruption to LNG flows through the Strait of Hormuz is increasing pressure on the European gas market as winter approaches.