Connection

popular articles

Europe struggles to meet its rare earth targets
BP discovers new oil field 190 km off the coast of Louisiana
PetroChina reaches new milestone in 2024 with net profit of $22.7 billion
Coolant leak at Olkiluoto 3 reactor in Finland
Macron Announces Construction of Eight New Nuclear Reactors

European gas prices rise as reserves shrink

Gas prices in Europe continue their upward trend, driven by a sharp decline in reserves and an anticipated increase in demand. The end of Russian gas transit through Ukraine and unfavorable weather conditions are adding pressure to the market.
  • [favorite_button]

Please share:

Gas prices in Europe are on the rise, fueled by historically low storage levels and growing demand in anticipation of the next winter. According to the Aggregated Gas Storage Inventory (AGSI) platform, European Union (EU) gas reserves were at 51% capacity as of February 5, 2025, compared to 68% at the same time in 2024.

A decline in reserves driven by multiple factors

The drop in storage levels is due to a combination of factors. The termination of Russian gas transit through Ukraine, which took effect on January 1, 2025, has reduced available supply across the continent. Additionally, colder-than-usual weather and weak wind energy production in the last quarter of 2024 forced European nations to draw more from their reserves.

These conditions have increased Europe’s reliance on liquefied natural gas (LNG) imports. However, with sustained demand from Asia, suppliers are imposing a premium on European shipments, making purchases more expensive.

Upward pressure on markets

The necessity of replenishing reserves before next winter is pushing market players to secure gas supplies now, despite high prices. The International Energy Agency (IEA) emphasizes that, to reach the EU’s target of 90% storage capacity by November 1, 2025, European nations will need to ramp up their purchases compared to the summers of 2023 and 2024.

This anticipation is further supporting gas price increases. On Friday morning, the Dutch TTF futures contract, the European benchmark, traded at €55.10 per megawatt-hour (MWh), up 1.37%. The previous day, it had reached €55.45 per MWh, its highest level since October 2023.

Uncertainty in the coming months

Weather forecasts are adding to market volatility. A cold snap expected in Europe next week could further strain the market. Meanwhile, geopolitical tensions surrounding oil, particularly the threat of strengthened sanctions on Iran, may indirectly impact energy supply dynamics.

Given these conditions, market participants are closely monitoring global LNG flows and European stockpiling strategies. The trajectory of gas prices in the coming months will largely depend on Europe’s ability to secure sufficient volumes ahead of the next heating season.

Register free of charge for uninterrupted access.

Publicite

Latest news

Craig Steinke appointed CEO of BluEnergies following James Deckelman’s departure
Siemens Energy raises annual outlook after 52% surge in orders
Enel posts €2bn net profit rise despite falling electricity prices
Six years sought in Sweden over Think Pink case and its 200,000 tonnes of waste
Elcogen signs agreement with Casale to integrate green hydrogen into ammonia

Recently published in

Woodway Energy appoints Diaco Aviki as CEO to drive growth

Diaco Aviki succeeds Thomas King at the helm of Woodway Energy Infrastructure amid expansion of its natural gas infrastructure in Texas.
The European Union plans to ban all Russian gas imports by the end of 2027
Brussels announces a full exit from Russian gas by the end of 2027, despite a remaining 9% dependency and pressure on the global liquefied natural gas market.
en_1140290951540-2
The European Union plans to ban all Russian gas imports by the end of 2027
Brussels announces a full exit from Russian gas by the end of 2027, despite a remaining 9% dependency and pressure on the global liquefied natural gas market.
en_1140290951540-2
SiEnergy acquires EPCOR’s Texas gas business for $60mn
US-based SiEnergy strengthens its footprint around Houston by acquiring Hughes Gas Resources, an EPCOR subsidiary, for $60mn, expanding its natural gas asset portfolio.
en_1140290946540
SiEnergy acquires EPCOR’s Texas gas business for $60mn
US-based SiEnergy strengthens its footprint around Houston by acquiring Hughes Gas Resources, an EPCOR subsidiary, for $60mn, expanding its natural gas asset portfolio.
en_1140290946540
Commonwealth LNG signs 20-year deal with major Asian buyer
US-based Commonwealth LNG has secured a 20-year supply agreement for 1 million tonnes of LNG per year with a major Asian company, reinforcing the development of its Louisiana terminal.
en_1140290951540
Commonwealth LNG signs 20-year deal with major Asian buyer
US-based Commonwealth LNG has secured a 20-year supply agreement for 1 million tonnes of LNG per year with a major Asian company, reinforcing the development of its Louisiana terminal.
en_1140290951540

Natural gas demand in Southeast Asia to surpass oil and coal by 2050

Driven by economic growth and renewable energy limitations, natural gas consumption in Southeast Asia is expected to nearly double by 2050, according to Wood Mackenzie.
ExxonMobil signs gas exploration deal with Egypt for two offshore blocks
Egypt signed a memorandum with ExxonMobil to restart natural gas exploration in the Mediterranean on the Cairo and Masry blocks amid a sharp decline in domestic production.
en_1140290979540-2
ExxonMobil signs gas exploration deal with Egypt for two offshore blocks
Egypt signed a memorandum with ExxonMobil to restart natural gas exploration in the Mediterranean on the Cairo and Masry blocks amid a sharp decline in domestic production.
en_1140290979540-2
Golar signs 20-year deals in Argentina for two FLNG units totalling $13.7bn
Golar LNG finalised long-term charter agreements with Southern Energy S.A. for two FLNG units offshore Argentina, generating a projected order backlog of $13.7bn.
en_1140290980540-2
Golar signs 20-year deals in Argentina for two FLNG units totalling $13.7bn
Golar LNG finalised long-term charter agreements with Southern Energy S.A. for two FLNG units offshore Argentina, generating a projected order backlog of $13.7bn.
en_1140290980540-2
Up to 3.5 million m³ of gas redirected to Brazil’s spot market in 2025
Brazil's gas market shifts toward spot contracts, driven by pricing gaps and greater contractual flexibility for local distributors.
en_1140290980540
Up to 3.5 million m³ of gas redirected to Brazil’s spot market in 2025
Brazil's gas market shifts toward spot contracts, driven by pricing gaps and greater contractual flexibility for local distributors.
en_1140290980540

Naftogaz receives €270 million from EBRD to bolster gas reserves in Ukraine

Ukraine will receive a €270 million loan from the European Bank for Reconstruction and Development, backed by a Norwegian grant, to secure gas imports over two winters.
CH4 receives EXIM award for 300 MW gas-to-power project in Guyana
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
en_1140290943540-20
CH4 receives EXIM award for 300 MW gas-to-power project in Guyana
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
en_1140290943540-20
Subsea7 and SLB OneSubsea awarded EPCI contract by bp for Ginger in Trinidad and Tobago
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
en_1140290947540-18
Subsea7 and SLB OneSubsea awarded EPCI contract by bp for Ginger in Trinidad and Tobago
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
en_1140290947540-18
Oman signs 15-year deal with Amigo LNG to diversify LNG supply sources
OQ Trading has signed a long-term sales agreement with Amigo LNG in Mexico to purchase 0.6 million tonnes of liquefied natural gas annually, with deliveries scheduled to begin in 2028.
en_1140290952540-17
Oman signs 15-year deal with Amigo LNG to diversify LNG supply sources
OQ Trading has signed a long-term sales agreement with Amigo LNG in Mexico to purchase 0.6 million tonnes of liquefied natural gas annually, with deliveries scheduled to begin in 2028.
en_1140290952540-17

Ukrainian gas production falls by 50% after Russian strikes

Russian attacks on Ukrainian gas infrastructure have halved national production, pushing Kyiv to seek alternative import sources to secure winter supply.
Woodside approves a $17.5bn investment for an LNG project in Louisiana
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
en_1140290947540-17
Woodside approves a $17.5bn investment for an LNG project in Louisiana
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
en_1140290947540-17
JERA and Saibu Gas join forces to optimise the operation of the Hibiki LNG terminal
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
en_1140290958540-15
JERA and Saibu Gas join forces to optimise the operation of the Hibiki LNG terminal
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
en_1140290958540-15
Calpine entrusts ExxonMobil with storage of 2 million tonnes of CO2 per year
Calpine and ExxonMobil have signed an agreement to transport and store up to 2 million tonnes of CO2 per year from a natural gas power plant near Houston.
en_1140290951540-15
Calpine entrusts ExxonMobil with storage of 2 million tonnes of CO2 per year
Calpine and ExxonMobil have signed an agreement to transport and store up to 2 million tonnes of CO2 per year from a natural gas power plant near Houston.
en_1140290951540-15

Ecopetrol seeks partners after Shell’s withdrawal from gas projects

Ecopetrol is developing a strategy to ensure the continuity of its offshore gas projects in the Caribbean following Shell's strategic withdrawal.
Washington grants another two-month reprieve for sanctions against NIS
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
en_1140290986540-2
Washington grants another two-month reprieve for sanctions against NIS
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
en_1140290986540-2
Saudi Arabia reduces crude consumption for power generation by 2030
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
en_1140290961540-14
Saudi Arabia reduces crude consumption for power generation by 2030
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
en_1140290961540-14
Miami LNG rebrands as Sawgrass LNG & Power to reinforce its diversified energy strategy
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
en_1140290954540-14
Miami LNG rebrands as Sawgrass LNG & Power to reinforce its diversified energy strategy
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
en_1140290954540-14

Woodside signs LNG supply agreements with Uniper for 2 million tonnes per year

Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
Baker Hughes reports record orders for IET despite a drop in cash flow
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
en_1140290947540-14
Baker Hughes reports record orders for IET despite a drop in cash flow
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
en_1140290947540-14
Malaysia LNG Gradually Restarts Operations After Major Incident at Bintulu
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
en_1140290962540-10
Malaysia LNG Gradually Restarts Operations After Major Incident at Bintulu
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
en_1140290962540-10
US LNG moratorium lifted: GTT expects rise in tanker orders
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
en_1140290960540-11
US LNG moratorium lifted: GTT expects rise in tanker orders
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
en_1140290960540-11

Advertising

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

VERVANT

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS