The International Energy Agency stated that the European Union enters the winter heating season with natural gas reserves at their lowest since 2013, amid expectations of continued pressure on global gas markets until 2027.
Storage levels below target
The Agency noted in a report published today, Tuesday, titled "Global Gas Security Review 2026," that storage levels in EU countries reached approximately 75% of their total capacity by the end of last October, a ratio below the European target level of 80%.
The Agency clarified that lower reserves increase European countries' dependence on liquefied natural gas supplies from global markets to meet demand during peak periods in winter, making them more vulnerable to the repercussions of severe cold waves, technical failures, or any potential supply disruptions.
Factors behind the decline in quantities
The report added that the quantities of gas injected into storage facilities during the current filling season are about 4% lower than the average of the past five years, noting that increased supplies during August, September, and October were insufficient to compensate for the shortage recorded in storage operations during the previous period.
The Agency attributed this to several factors, including the impact of the closure of the Strait of Hormuz since the outbreak of war in the Middle East in late February on Europe's imports of liquefied natural gas, at a time when gas reserves were already low at the end of last winter, as well as the postponement of gas purchases to refill tanks in hopes of prices declining later.
Ongoing challenges until 2027
The Agency warned that lower European reserves, coupled with limited storage options for some liquefied natural gas importing countries in Asia and South America, could increase global competition for available gas shipments and push spot prices higher, especially during periods of increased demand.
The report pointed out that the need to refill European reserves during the summer of 2027 may keep global gas markets in a state of scarcity and pressure until next year, amid the transformations the European energy sector has undergone since the gas crisis of 2022.
Source: Syrian Arab News Agency (SANA)
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