Azernews.Az

Ulviyya Poladova

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Natural gas storage facilities across Europe are currently 60.8% full, AzerNEWS reports.

According to Gas Infrastructure Europe (GIE), concerns over the continent’s natural gas reserves are growing as storage levels remain below historical averages and are lagging behind the pace needed to comfortably reach pre-winter targets.

Warm weather in Southern and Central Europe is also hampering efforts to replenish storage facilities. Higher temperatures across the continent are increasing demand for gas-fired power plants, resulting in part of the gas intended for storage being diverted to electricity generation.

Meanwhile, natural gas futures prices in Europe are also rising. Gas prices at the Dutch TTF hub have reached €62.26 per megawatt-hour.

The price increase is being driven by continued disruptions to liquefied natural gas (LNG) supplies from the Gulf, reduced shipping traffic through the Strait of Hormuz, and uncertainty surrounding US-Iran negotiations.

Analysts expect ongoing uncertainty over the Strait of Hormuz, combined with low gas storage levels in Europe, to keep natural gas prices elevated this week. However, developments in LNG flows are expected to remain the key driver of price movements.

If storage levels remain low, particularly if the situation persists into the colder winter months, natural gas prices could rise sharply between November and March.

According to research and consulting firm Wood Mackenzie, Europe’s historically low natural gas storage levels pose a risk to supply security during the 2026-2027 winter season.