Key facts
- The Netherlands will miss its target to fill natural gas storage sites to 115 TWh for the upcoming winter.
- Gasunie, the Dutch gas network operator, issued the warning.
- This development is an early indicator of potential European supply issues for a harsh winter.
- EU gas storage levels are currently at a 17-year low and below the 5-year average.
- The Strait of Hormuz crisis has impacted Qatar's LNG flows.
The Netherlands is set to miss its target for filling natural gas storage sites ahead of winter, a development that signals potential supply challenges for Europe. Gasunie, the Dutch gas network operator, announced that the country will not reach its goal of 115 terawatt-hours (TWh) of stored gas, which represents approximately half of Dutch consumption and was benchmarked against the harshest winter in the past 30 years.
While Gasunie stated this does not automatically mean a supply shortage or risk to security, it indicates insufficient preparation for a severe winter scenario without additional policy measures. The operator is currently assessing strategies to maximize gas supply amidst a significantly altered geopolitical landscape and market conditions over the past six months, aiming to mitigate further upward pressure on gas prices.
Across Europe, current gas inventory levels are at a 17-year low. Supply available for purchase is tighter than before the 2022/2023 winter, partly due to Qatar's LNG flows being impacted by the crisis in the Strait of Hormuz. EU gas storage stands at 63% full, below the 5-year average of 80% and last year's level of nearly 76% at this time. ING strategists noted that at the current pace, the EU may struggle to meet even its lower storage target of 75% before the heating season, potentially leading to forced buying and increased upside risk for gas prices.