403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Europe Draws Down Gas Reserves at Fastest Pace in Five Years
(MENAFN) Europe is drawing down natural gas reserves at the fastest pace in five years as a severe winter grips the continent, with liquefied natural gas (LNG) imports falling short of demand, media reported.
Daily withdrawals from EU storage facilities have averaged 7.79 terawatt-hours, while LNG inflows have been less than half that amount, the outlet said Friday. Stockpiles are now below 50% capacity—unusually low for the season—and gas prices have spiked more than 30% this month. Media cautioned that replenishing reserves ahead of next winter may require government intervention.
The shortfall comes after Russian pipeline deliveries were slashed following the escalation of the Ukraine conflict in 2022 and subsequent sanctions. Remaining flows were further reduced in early 2025 when a transit deal with Kiev expired. Russia, which once supplied about half of the EU’s gas, has since lost ground as the bloc last month committed to phasing out Russian fossil fuels, including LNG, by the end of 2027.
Moscow insists it remains a dependable supplier and has condemned Western sanctions as unlawful, while redirecting exports to what it calls “friendly” markets.
To offset the gap, Europe has leaned heavily on American LNG despite its higher cost. The Institute for Energy Economics and Financial Analysis (IEEFA) estimated earlier this month that U.S. shipments could account for up to 80% of EU LNG imports by 2030. A deal struck last July obliges the bloc to purchase $750 billion worth of U.S. energy products by 2028.
Market dynamics have also fueled the reliance on storage. According to media, LNG cargoes are less appealing when spot prices soar, as costs include shipping and regasification. Gas stored earlier at lower prices can be withdrawn more cheaply, prompting Europe to drain reserves rather than buy fresh LNG. The strategy has left storage levels at multi-year lows, raising alarm over the continent’s energy security.
Daily withdrawals from EU storage facilities have averaged 7.79 terawatt-hours, while LNG inflows have been less than half that amount, the outlet said Friday. Stockpiles are now below 50% capacity—unusually low for the season—and gas prices have spiked more than 30% this month. Media cautioned that replenishing reserves ahead of next winter may require government intervention.
The shortfall comes after Russian pipeline deliveries were slashed following the escalation of the Ukraine conflict in 2022 and subsequent sanctions. Remaining flows were further reduced in early 2025 when a transit deal with Kiev expired. Russia, which once supplied about half of the EU’s gas, has since lost ground as the bloc last month committed to phasing out Russian fossil fuels, including LNG, by the end of 2027.
Moscow insists it remains a dependable supplier and has condemned Western sanctions as unlawful, while redirecting exports to what it calls “friendly” markets.
To offset the gap, Europe has leaned heavily on American LNG despite its higher cost. The Institute for Energy Economics and Financial Analysis (IEEFA) estimated earlier this month that U.S. shipments could account for up to 80% of EU LNG imports by 2030. A deal struck last July obliges the bloc to purchase $750 billion worth of U.S. energy products by 2028.
Market dynamics have also fueled the reliance on storage. According to media, LNG cargoes are less appealing when spot prices soar, as costs include shipping and regasification. Gas stored earlier at lower prices can be withdrawn more cheaply, prompting Europe to drain reserves rather than buy fresh LNG. The strategy has left storage levels at multi-year lows, raising alarm over the continent’s energy security.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment