'Winter panic': EU gas stores at their lowest level in 13 years
As one of Europe’s biggest consumers of gas the UK may be particularly exposed to heightened price volatility
TL;DR
- EU gas stores are at their lowest level in 13 years, at 63% capacity in late August, below the five-year average.
- Energy traders are experiencing 'winter panic' due to low storage levels, anticipating heightened price volatility.
- The UK faces particular exposure due to high consumption and low domestic storage capacity.
- Disruptions to Middle Eastern oil and gas exports, a cold end to last winter, and higher gas power generation this summer have depleted EU reserves.
- Europe is not expected to face physical gas shortages, but prices are predicted to rise significantly, potentially above €100/MWh without Middle Eastern supply.
- Germany's storage is about half-full, while Belgium and the Netherlands are at 51% and 45% respectively.
- The UK government is considering financial support for domestic gas infrastructure as North Sea production declines.