The issue of gas storage on the continent is in the spotlight as the war in Iran has reduced global supplies and raised prices. According to Gas Infrastructure Europe, gas distribution stations in the Netherlands have an occupancy rate of just 6%, the lowest since the end of 2010. In Germany, home to the region’s largest facilities, inventories are also well below normal at around 22%.
European Union Energy Commissioner Dan Jorgensen urged member states to start filling gas storage ahead of time to avoid competition for supplies that could cause prices to rise in the summer. He also suggested lowering storage fill targets to 80% and maximizing the use of EU legislative flexibilities, his letter said.
Previously, seasonal fluctuations in gas prices made filling storage facilities unprofitable, but that is starting to change. News of widespread damage to facilities in Qatar last week led to an increase in prices for long-term gas contracts in Europe, which improved conditions for filling storage facilities in the summer.
Prepare the “sledges” in summer
Bloomberg writes that European benchmark gas futures have risen in price by more than 55% since the war began. Europe’s overall gas storage fill rate is around 28%, the lowest since 2022. This shortage is forcing Europe to compete more fiercely with Asia for liquefied natural gas (LNG).
The situation is forcing Europe to accelerate its search for alternative energy sources. The current crisis has become a catalyst for a radical restructuring of the EU’s energy strategy. The main focus is on three areas: diversification of imports, accelerated transition to renewable energy sources (RES) and legislative bans on old supply channels.
LNG supply is traditionally the US, which accounts for about 57-58% of all EU imports of the fuel this year. Norway is becoming the main source of pipeline gas, replacing the volumes that have fallen out. Azerbaijan is also actively increasing supplies to the EU through the Southern Gas Corridor to stabilize the market amid a shortage of Qatari LNG.
The value of European benchmark gas futures (Dutch TTF) jumped more than 70% for March 2026. As of March 27, futures were trading at €55.7 per MWh, and at the peak of the month the price approached €70 per MWh due to attacks on LNG facilities in Qatar.
