Europe's Gas Storage Levels Hit Historic Lows as Energy Bills Soar
Fears are mounting over energy bills this winter as gas storage levels have dropped and wholesale gas prices are rising.
The European Union's natural gas storage capacity is currently at a historically low level of 54%, according to Wood Mackenzie. Typically, storage sites are refilled to 70% of their capacity by this time in the summer months.
Wood Mackenzie warned that even under the best-case scenario, Europe will enter the heating season at 75% capacity, which is below the five-year average of 90%. This has driven spot natural gas prices more than 50% above their June lows.
Massimo Di Odoardo, vice-president of LNG research at Wood Mackenzie, said: 'Low European inventories, strong Asian demand and limited new LNG supply growth almost guarantee elevated prices through this winter and into 2027.'