EU gas reserves at 13-year low, sparking winter supply fears
EU gas storage is at its lowest level for this time of year in 13 years, at 63% full. Analysts warn this could lead to higher price volatility and supply issues during winter. The UK, with limited storage, is particularly exposed to market fluctuations.
The EU's storage shortfall stems from multiple compounding factors. A cold conclusion to last winter drained reserves, while unusually high gas-fired power generation during summer heatwaves slowed the usual seasonal refill. Disruptions to Gulf energy exports following the US-Israel conflict with Iran have further hampered efforts to reach the bloc's reduced 80% target.
Western European nations face the most acute pressure, with storage levels trailing those of southern counterparts like Italy. The UK's minimal domestic storage capacity makes it heavily dependent on pipeline imports from Europe and LNG shipments from the US and Middle East. Centrica's chief executive confirmed Britain enters winter with virtually no gas held in reserve.
Households and businesses across Europe could face significantly higher energy bills if winter temperatures drop sharply or wind generation underperforms, forcing greater reliance on expensive imported gas. The UK, with its limited storage buffer, may experience the most immediate price shocks, potentially straining household budgets during the coldest months. Industrial energy users could also face difficult choices about production levels, with knock-on effects on employment and consumer prices.