European gas reserves plunge below usual
(MENAFN) Europe’s natural gas reserves are unusually low for this time of year, according to a report by Bloomberg, which attributes the shortfall to increased energy demand caused by a regional heatwave and higher use of air conditioning.
Currently, underground gas storage across Europe is about 62% full, well below the typical 80% level reached by early summer to ensure sufficient reserves for the winter heating season. The heatwave in Asia has further worsened the situation, as fuel shipments are being redirected to meet demand there, intensifying global competition for supplies. As a result, European natural gas futures have neared a two-week high, with Bloomberg noting that Europe will likely have to pay more to secure its share of the market.
Nevertheless, according to a note from Goldman Sachs cited in the report, the EU could still manage to refill its reserves to around 80% by the end of summer.
The EU relies on imports for nearly 90% of its natural gas needs, with Russia still playing a significant role in supplying the bloc despite existing sanctions.
In May, European Commission President Ursula von der Leyen announced a plan to completely phase out Russian oil and gas imports by 2027 as part of the EU’s REPowerEU strategy to reduce reliance on Russian fossil fuels and transition toward renewables.
However, this initiative has faced opposition from Hungary and Slovakia, which depend heavily on Russian pipeline gas. Slovakia has blocked the EU’s 18th sanctions package targeting Russia’s energy and financial sectors, citing fears of shortages and price hikes. Hungary has backed the veto and is demanding concessions on energy and REPowerEU regulations.
Moscow, meanwhile, has criticized the EU’s sanctions, calling them self-destructive, arguing that they have led to rising energy costs and harmed the bloc’s economy. Since 2022, Germany—the EU’s largest economy—has entered a recession, while growth across the bloc has largely stalled.
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