Europe's Winter Gas Supplies at 13-Year Low Amid 'Panic' among Traders

Europe is heading into winter with its lowest gas storage levels in 13 years, triggering 'winter panic' among energy traders. The bloc's gas facilities were only 63% full at the end of August, well below the typical 80% average for this time of year.

Greg Molnar, a gas analyst, warned that low storage levels are increasing the risk of price volatility due to cold spells or slow wind patterns. He noted that Europe's gas inventories are expected to be one-fifth below their five-year average by winter.

The UK is particularly exposed as it relies heavily on pipeline imports from Europe and LNG cargoes from the US and Middle East, but has among the continent's lowest domestic storage capacity.

British Gas owner Centrica's CEO Chris O'Shea said that the UK had 'almost no gas in storage' for the coming winter. European inventories have struggled to recover due to severe disruption to Gulf oil and gas exports after the US-Israel war with Iran, a cold end to last winter, and unusually high gas-fired power generation during Europe's summer heatwaves.