Editor's note:
On the 18th, S&P Global said the latest data from the European gas infrastructure association shows that, due to persistent supply disruptions and price headwinds, Europe's liquefied natural gas storage is now far below recent average levels. 'European gas reserves have become the focus and core hidden danger of the global energy market.' According to Bloomberg, Europe may face a more severe energy supply challenge than in the past. The energy supply crunch and price spikes triggered by the Russia-Ukraine conflict, and the record sums invested by governments and the energy industry to replenish stocks, remain fresh in Europe's memory. The high cost of U.S. energy and restrictions on Russian energy have made it very difficult for Europe to build adequate gas reserves before this winter.
The number 59% triggers anxiety in Europe.
The Strait of Hormuz plays a pivotal role in the global energy landscape, normally carrying nearly 20% of the world's LNG shipments. The outbreak of the Israel-Iran conflict and the actual closure of the strait directly cut off the export channel of Qatar, normally the world's second-largest LNG exporter. Output at Ras Laffan Industrial City, the world's largest LNG facility located in Qatar, has been continuously constrained, and Qatar also paused its efforts to rapidly boost production in July, leading to a large number of canceled delivery plans. This sudden supply shock forced European and Asian buyers into a fierce scramble for remaining LNG cargoes.
From Europe's own inventory and import data, the situation is particularly severe. Data from Switzerland's Federal Energy Office and ENTSOG, the European Network of Transmission System Operators for Gas, shows that between Aug. 8 and 10, Europe's natural gas storage fill rate was only 59%, the lowest seasonal level since records began in 2009, even below the lowest level for the same period in the past five years. ENTSOG data also shows that the EU's total LNG imports in July fell sharply to the lowest point since August 2024; the EU's overall gas imports in July were also far below the same period last year. Sharp price volatility also confirms the unusual nature of this crisis. TTF gas, the European benchmark, rose more than 10% in a single day last Monday to 60.8 euros per megawatt-hour. Before the Israel-Iran conflict it was only around 30 euros, and before the Russia-Ukraine conflict it was as low as 15-20 euros. IEA data shows European gas prices have nearly doubled from the same period in 2025.
Source: Global Times | Original
