Europe's winter natural gas reserves may fall to their lowest level in 15 years

Golden Ten Data reported on June 29 that Europe is about to enter the heating season, but natural gas inventory levels are set to fall to their lowest point in at least 15 years. This may result in higher natural gas prices for businesses and households this winter. According to consulting firm Wood Mackenzie, EU natural gas storage facilities will have only 76% inventory at the end of the critical natural gas replenishment season (typically between April and October). Data from the Gas Infrastructure Europe (GIE) shows this will be the lowest peak inventory level since 2011. The main reasons are the disruption of liquefied natural gas shipments through the Strait of Hormuz due to the Middle East war, as well as decreased natural gas production in Qatar and the UAE. After experiencing an unusually cold winter, EU storage facilities began the replenishment season with inventories at just 28%, below normal levels for the same period. Currently, according to GIE, average inventory in EU storage facilities stands at 48%.