LONDON,June 29. Europe's in a tight spot heading into heating season,with gas storage levels expected to be lowest in 15 years. European underground gas storage (UGS) facilities might hit just 76% capacity by end of injection season,which usually wraps in October. This drop,lowest since 2011,has many worried about steep price hikes for households and businesses this winter.
Gas shortage largely driven by geopolitical tensions,especially ongoing U.S.-Iran conflict. Disruption in liquefied natural gas (LNG) supplies through vital Strait of Hormuz has cut production in Qatar and UAE . And EU plans to ban Russian LNG,which makes up 14% of its imports,by January 1, 2027,adding fuel to fire.
After a cold winter,EU storage started replenishment at mere 28% full,well below usual levels for this time of year. Now,they're averaging about 48% capacity. EU Council's January 26 decision to ban Russian LNG by 2027,along with pipeline gas supplies ban starting September 30,2027,complicates things. Restrictions on LNG imports under short-term contracts began April 25,2026,with pipeline contracts ending June 17…
