Europe's Gas Storage Plummets to 15-year Low

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

Summary

Europe is facing a looming gas storage crisis with winter approaching thanks to the war with Iran crippling liquefied natural gas (LNG) exports from Qatar and Asia outbidding the European Union (EU) for alternative LNG cargoes.

Europe is heading into winter with gas storage levels at their lowest in 15-years, thanks mainly to the ongoing conflict sparked by U.S./Israeli attacks on Iran and its impact on LNG production and shipping in the Middle East. 

Storage Levels at Record Low

Gas storage levels stand at roughly 65% full according to data from Gas Infrastructure Europe (GIE) - the lowest level for this time of year in 15 years and notably lower than the five-year average. Levels for this time of year are usually 80%. Renewed military action in the conflict with Iran has again stoppered LNG cargoes bound for Europe and elsewhere through the Strait of Hormuz. Downstream effects of the Strait of Hormuz closure have removed approximately 20% of global LNG supply, according to Wood Mackenzie analysis. Europe is relying heavily on LNG to fill gas storage. According to Industrial Info Resources data, there are 90 LNG projects in Europe worth roughly US$10 billion in investment.  

Rising Prices

Storage efforts are also being undermined by record gas prices in recent weeks, which makes selling gas a lot more profitable for commercial gas companies than storing it. European gas prices hit their highest since 2023 in the past week, tipping above €75 (US$87) per megawatt hour (MWh) at the European TTF hub in the Netherlands for the first time since the start of the Iran war in February. European gas prices were less than €40/MWh (US$46/MWh) in June.

Countries Struggling The Most

According to the latest information from GIE, storage levels are notably low in countries like the Netherlands and Latvia, with levels well below 50%. The U.K.'s storage currently stands at just 31%, while war-torn Ukraine stands at 33%. Germany, the largest EU economy, is also suffering with levels at 53%. Ireland, with no gas storage, is particularly exposed to gas shortages and rocketing fuel prices. Dutch state-owned energy company Gasunie told news service NU.nl that the filling target for gas storage in the Netherlands is no longer possible. At the end of August the figure stood at 44% of their full capacity. This compared to 63% last year, 88% in 2024 and 94% in 2023. In Germany, which has the highest storage capacity in Europe, there are fears that it will  fail to hit its November targets. The country's gas-storage association INES told Euronews Business: "If storage injections continue at their current pace, Germany will not meet the statutory storage filling requirements by 1 November." Germany's target is 70%, and it currently stands at 53%, compared to 69% at the same time last year. 

Europe's Heavy Reliance on LNG

With the EU sanctions against Russian oil and gas imposed over Russia's invasion of Ukraine in 2022, LNG imports have become an essential component in the EU's energy mix and now cover around half of total gas imports. This makes the EU the world's largest LNG importer. Last month, 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 'soft' 80% target remains achievable with 2025 LNG import levels. For additional information, see July 21 2026, article - Europe's Gas Storage Problem 'Challenging'. 

In its Quarterly Gas Review, Bill Farren-Price, a distinguished research fellow at the Oxford Institute for Energy Studies, wrote: "Gas' role in power is becoming more volatile, with weather also driving renewables availability, hydro and even temperature-related nuclear curtailments also making a clean read on gas more difficult. Europe's June heatwaves for example saw the share of gas in power generation rise from its average of 13% in Q2 as a whole to 19% in the second half of June, providing key flexibility. This demand jumpiness will continue. There is now little prospect of the EU meeting its softest storage targets this year since other European sectoral demand has stayed mostly flat, making little room for higher injections. Whichever pathway the Iran conflict takes, it now looks likely that European reliance on just-in-time LNG will be higher this winter -- and the storage refill requirement an even steeper mountain to climb in summer 2027."

The Impact of Heatwaves and Drought

On top of the severe disruptions caused by the contested Strait of Hormuz, heatwaves and drought are also impacting gas deliveries. Data from Wood Mackenzie's VesselTracker noted severe drought conditions restricting shipping operations in the Panama Canal and in Europe's key inland energy artery, the Rhine River. "The water level at Kaub, the Rhine's critical chokepoint for barge navigation in western Germany, dropped to just 15cm on 11 August, down from 30cm on 28 July, the lowest level on record," it noted. Most barges were operating at around 25% of their cargo capacity as of 12 August. Rising cargo prices have put added strain on inland refineries. "The cost of moving cargo from Rotterdam to Cologne reached €80 (US$93) per metric tonne in the week ending 7 August, up from €17 (US$20) per metric tonne in mid-June. Rates to Frankfurt climbed to €150 (US$174) per metric tonne from €29 (US$34) per metric tonne over the same period."

Key Takeaways

• Europe is heading into winter with gas storage levels at their lowest in 15 years.
• Countries with the lowest level of storage include the U.K., Ukraine, Netherlands, Latvia, Belgium and Germany.
• Industrial Info Resources is tracking 90 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).