The European Union’s gas reserves have nosedived this winter, marking one of the steepest declines in recent memory. Starting 2024 with reserves exceeding 70% of total capacity, the combination of freezing temperatures, surging demand, and disrupted supplies from Ukraine has drained stockpiles at an alarming rate.
According to Gas Infrastructure Europe (GIE) data released on January 4, reserves currently hold 84 billion cubic meters (bcm) of natural gas. This figure reflects a drop of 20 bcm compared to the 2023 average and 15 bcm less than 2022, a year already strained by soaring prices and energy security fears after Russia’s invasion of Ukraine.
The depletion has been worsened by “dunkelflaute,” a German term referring to prolonged periods without wind or sunlight, hampering renewable energy production and pushing power plants to burn more gas to meet demand. In response, the EU has raised its strategic reserve targets, requiring at least 50% capacity by February 1, a five-percentage-point increase from previous goals.
The halt of gas supplies from Ukraine has further intensified the EU’s reliance on liquefied natural gas (LNG), shipped via tankers. The United States has emerged as the EU’s primary LNG supplier, overtaking Russia. Meanwhile, Qatar and Australia also benefit, cementing their positions as leading LNG exporters alongside the US.
Kyiv’s supply suspension has sparked backlash from nations like Hungary and Slovakia, which avoided energy restrictions by sidestepping EU directives since the onset of the Russian conflict.
Globally, four European nations rank among the top 10 LNG consumers. France leads Europe, holding the fifth spot worldwide at 30.7 bcm, trailed by Spain (24.7 bcm), the UK (19.4 bcm), and Italy (16.3 bcm).
However, global LNG market pressures, driven by high demand in Asia, pose further challenges. China leads LNG imports at 97.8 bcm, followed by Japan with 90.3 bcm. This intense competition means Europe will likely face higher prices as it secures its critical gas supplies.
