Key facts
- EU gas supply remains stable despite lower-than-historical storage levels.
- European gas storage sites were 70% full as of September 24.
- Germany's gas storage is only 57% full, below the EU average.
- Choked LNG flows from the Middle East have driven up gas prices in Asia and Europe.
The European Union's natural gas supply is currently stable, according to the Gas Coordination Group, which advises the European Commission on security-of-supply measures. Despite this assessment, concerns are mounting due to significantly lower gas storage levels compared to historical averages. The group met this week to review the market situation and reconfirmed the stable supply, but acknowledged the lower storage figures.
Global LNG flows have been impacted by issues in the Strait of Hormuz over the past six months, leading to competition for supply that does not require transit through the chokepoint. This has driven gas prices in Asia and Europe to their highest levels since the 2022-2023 energy crisis. As a result, European gas storage sites are below historical and five-year averages. Data from Gas Infrastructure Europe shows EU storage sites were 70% full as of September 24. Major economies, including Germany, are experiencing even lower storage levels, with Germany's storage at just 57% full, raising concerns about supply security for the upcoming winter, especially if it proves to be colder than previous years.