LNG War Looms Over Europe as Gas Storage Levels Plummet

Europe's natural gas storage levels are at their lowest in nearly two decades ahead of winter, setting the stage for a battle over liquefied natural gas (LNG) supply. The war in the Middle East has crippled LNG supply from Qatar, leaving both Europe and Asia competing for a shrinking pool of global LNG cargoes.

According to Go Katayama, principal insight analyst for LNG at intelligence firm Kpler, 'the potential for a global 'fight for fuel' is there, particularly in a colder winter.'

The EU's storage sites are currently about 66% full, well below the five-year average of over 80%. To reach even its lowest storage target of 75%, Europe needs to buy gas worth over $8.1 billion at current prices.