Europe’s LNG stores depleted ahead of winter as conflicts choke supplies
Steady year-round Russian pipeline gas has been scarce since the war in Ukraine, while the Iran conflict has stalled supplies from the Middle East.
Europe's liquefied natural gas (LNG) storage facilities are running dangerously low heading into the winter months, as geopolitical tensions have disrupted global supply chains. The continent, which has long relied on a long-standing strategy of purchasing fuel at lower prices during the summer and storing it for use during the colder months, is now facing unprecedented challenges.
Despite the efforts of traders to secure LNG reserves, the economics of this trade have been thrown into disarray for the second consecutive year. The loss of Russia's stable pipeline gas exports, following the outbreak of the Ukraine conflict, has left Europe increasingly dependent on LNG imports. This reliance has led to inflated summer prices in recent years, as market participants grappled with the uncertainty of a tight global LNG market.
The situation has been further exacerbated by the ongoing Iran crisis, which has cut off a significant portion of Middle Eastern LNG supplies. As a result, European winters are now being jeopardized by a precarious combination of reduced Russian gas deliveries and constrained LNG stocks. The consequences of this precarious situation could be felt across the continent, as households and businesses brace for the potential impact of a gas shortage this winter.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
