Hormuz Crisis Leaves EU Gas Storage Short Heading Into Winter
Historically low levels of natural gas in storage sites for this time of year could leave the European Union with a gas shortfall in the winter and could force the bloc to cut demand by 7%, the U.S.-based Institute for Energy Economics and Financial Analysis (IEEFA) said in a report on Friday. European natural gas prices have soared dramatically since the war in Iran trapped a fifth of the…
The European Union is facing a potential gas shortage heading into winter due to historically low storage levels, according to a report by the U.S.-based Institute for Energy Economics and Financial Analysis. The EU's gas storage is currently at about 73% full as of early October, the lowest since records began in 2011. This shortage could force the EU to cut winter gas demand by 7%, or 14 billion cubic meters, compared to last year.
The high prices are due to the war in Iran trapping a fifth of the world's liquefied natural gas supply behind the Strait of Hormuz, causing European gas prices to soar since early March. Most of Qatar's LNG supply remains offline, and there is no clarity on when normal shipping of LNG cargoes will resume. As winter approaches, cold snaps could further complicate the EU's gas supply, especially with the bloc's full ban on Russian LNG imports set to take effect on January 1, 2027.
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