Europe's Gas Storage Problem 'Challenging'

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Europe is facing a challenging summer with regard to gas storage supplies and increased liquefied natural gas (LNG) imports will be needed.

Europe will need increased liquefied natural gas (LNG) imports over the summer months to refill its depleted gas storage ahead of winter. In its Summer Supply Outlook 2026, the European Network of Transmission System Operators for Gas (ENTSOG) has highlighted that the European Union (EU) is facing a number of key challenges from record-low storage levels and high global demand for LNG to ongoing supply disruptions caused by the war in Iran. The report noted that the region's "resilient" LNG regasification capacity is expected to help compensate for lower storage levels.  According to Industrial Info Resources data, there are almost 100 LNG projects in Europe worth roughly US$10 billion in investment. 

The Challenges

• Low storage levels: At the start of the summer gas season (1 April 2026), average EU gas storage stood at 28% capacity, below the levels recorded at the start of the previous three summer seasons.
• High LNG demand: Refilling storage to the 90% target by 1 November will require greater use of the EU's gas infrastructure and higher liquefied natural gas (LNG) imports than in previous years.
• Supply disruption risks: The ongoing conflict in the Middle East is pushing up gas prices and narrowing the usual summer-to-winter price gap. This weakens the economic incentive for gas storage injections, which could further slow refilling.

Growing Role for LNG

Evaluating the Summer Supply Outlook 2026, ACER - the EU Agency for the Cooperation of Energy Regulators - confirmed that the EU's LNG imports will need to rise by around 13% over 2025 levels to meet summer demand and reach the 90% filling target before winter. The 80% target remains achievable with 2025 LNG import levels. LNG continues its growing role in the EU's energy mix now covering around half of total gas imports, making the EU the world's largest LNG importer.

Tight Market Conditions 

"Storage refilling could become more challenging in the months ahead," ACER noted. "Unfavourable winter-summer price spreads, the phase-out of short-term Russian LNG and pipeline gas contracts, and continued volatility due to the Middle East conflict constrain the supply, increasing the pressure to accelerate injections before November."

Russian LNG in Europe

ACER has been tracking the ongoing role of Russian LNG in Europe's gas mix, despite the tightening of EU sanctions against Russia for its invasion of neighboring Ukraine in 2022. ACER is mandated to monitor the flow of Russian gas to Europe and the impact of sanctions. It found that as of July 1, Russian gas still accounts for around 12% of EU gas demand. Long-term contracts for Russian gas remain in place in parts of the EU...with LNG cargoes landing in Spain, France, Belgium and the Netherlands. Currently, the total authorised contracts of Russian LNG held in Europe range from 20 billion to 32 billion cubic meters (bcm) per year. Authorised pipeline gas contracts continue in Hungary, Slovakia and Greece. In total, EU pipeline gas annual contracts range from 16 to 26 bcm. It concluded that: "The increase in Russian LNG imports is driven by a combination of factors including front-loaded deliveries ahead of the tighter restrictions, contract adjustments, and some previously transhipped volumes which may have remained in the EU with the ban on transhipments. The current geopolitical context is also deemed relevant, pointing to efforts to maximise supply from alternative sources following the closure of the Strait of Hormuz."

Key Takeaways

• Europe is facing a challenging summer and will have boost its liquefied natural gas (LNG) imports to fill its low gas storage capacity for winter.
• Gas storage levels for the EU were at 28% at the start of April, the lowest in four years.
• Industrial Info Resources data is tracking almost 100 LNG projects in Europe worth roughly US$10 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).