European Gas Storage Can't Surivive 3 More Months of Hormuz

European gas storage can't surivive 3 more months of Hormuz

Europe risks a major gas storage shortfall if disruptions through the Strait of Hormuz continue for another 1-3 months, with inventories still far below normal seasonal levels. LNG supply disruptions, strong Asian demand, and distorted gas pricing have made refilling storage unusually difficult and expensive across the EU. Equinor warns prolonged disruptions could push Dutch TTF gas prices toward €90/MWh, forcing industrial demand destruction an…

European gas storage faces difficult path to refill targets

European gas storage refill rates are increasingly diverging from historical norms as tighter LNG market conditions, reduced Russian pipeline supply and shifting Atlantic cargo flows raise fresh concerns over Europe’s ability to comfortably replenish inventories ahead of winter. There are some interesting dynamics this year in the rate of injections/withdrawals into/from European gas storage. Withdrawals collapsed in March when the Strait of Hor…