'We risk going through the cold season without a real safety net': European gas reserves at historic lows

A 15-year low. At the start of September, the European Union's (EU) gas storage facilities were only 65% full, a historically low level for this time of year. Every spring, as usual, European countries began filling these reservoirs in preparation for winter. But the war in the Middle East upended their plans: The blockade of the Strait of Hormuz, which has prevented Qatar from exporting its liquefied natural gas (LNG), sent gas prices soaring. As a result, European energy suppliers slowed their purchases while trying to build up reserves. "There was hope that the situation would normalize, that Qatar would return to the market and that prices would drop in time to fill the tanks before winter," explained Anne-Sophie Corbeau, a gas expert at the Center on Global Energy Policy at Columbia University in New York. "But that is not happening, and we risk going through the cold season without a real safety net." Traditionally, when temperatures drop, gas drawn from these underground reserves covers up to one third of EU consumption. According to calculations by Bloomberg, the region still needs to acquire more than 100 terawatt hours of gas – the equivalent of more than €7 billion at current rates – to reach its minimum storage target of 75% by the start of the heating season. Achieving this would require an unprecedented injection rate for this time of year since the 2022 energy crisis, which could considerably increase price pressure. You have 60.29% of this article left to read. The rest is for subscribers only.