Consultancy Wood Mackenzie forecast that EU storage facilities will finish the critical refill season (April through October) only about 76 percent full. Data from Gas Infrastructure Europe (GIE) indicate that would be the lowest peak level of stored gas since at least 2011.
The FT says the shortfall is due to the Iran war, which have blocked shipments of liquefied natural gas through the Strait of Hormuz, which usually accommodates one-fifth of global supplies, and to reduced production in Qatar and the United Arab Emirates. European storage sites began the injection season only 28 percent full and are currently about 48 percent full on average, GIE data show.
Gas prices in Europe spiked after the outbreak of the war but later stabilized, the FT reported, especially after a ceasefire between Washington and Tehran announced in early June. That calm contributed to another problem: prices at European gas hubs fell low enough that they were often not attractive to LNG cargoes, including those from the United States.
The European Commission said Sunday that current storage levels “do not pose an immediate concern for energy security,” adding that 80 percent full is sufficient to cover winter supplies. A commission spokesman said storage is roughly 10 percent below pre-crisis averages and noted that gas demand in the EU has fallen about 17 percent.
The commission has recommended that member states fill
storage to 80 percent, or at least 75 percent, to ease price pressure. In
recent years the nonbinding target has been 90 percent.