Bloomberg reports, referencing an International Energy Agency (IEA) study, that tightness in the global natural gas market might continue into next year. The agency cautions that Europe could finish the current winter with unprecedentedly low fuel supplies, requiring a major replenishment initiative.
The report shows that EU gas storage sites are starting the heating season with their lowest stock levels since 2013. The IEA predicts that if the forthcoming winter is colder than usual and if interruptions to liquefied natural gas (LNG) deliveries via the Strait of Hormuz continue, EU gas storage levels might dip below 10% of their operational capacity by the end of March 2027.
The document indicates that this situation would expose the European market to late-season cold spells, possibly causing increased price fluctuations as the season concludes. As Bloomberg highlights, European economies are presently facing gas prices close to their peak levels since the beginning of the energy crisis four years prior.
Additionally, the IEA predicts that as a result of the European Union’s prohibition on Russian LNG imports through long-term agreements starting January 1, 2027 alongside the halt of pipeline gas deliveries by the fourth quarter of next year, Russian gas exports to the EU will decrease by 30 billion cubic meters relative to 2026 figures.
source: bloomberg.com
