EU facing winter gas shock – FT

The European Union may enter the upcoming heating season with its lowest gas reserves in 15 years, a situation exacerbated by scaled-back Russian imports and increasing reliance on more expensive LNG. Projections indicate storage sites will be only 76% full by the end of the restocking season, the lowest pre-winter level since 2011. This outlook is further complicated by the planned EU ban on Russian LNG and disruptions to global supply chains, raising concerns about potential price hikes, especially during cold spells.

• EU gas reserves are projected to be at their lowest pre-winter level in 15 years, at 76% capacity.
• The bloc faces soaring energy prices due to reduced Russian oil and gas imports and increased reliance on more expensive LNG.
• A planned ban on Russian LNG from January 1 will eliminate around 14% of the bloc’s current imports.
• Disruptions to LNG shipments and lower production in Qatar and the UAE add to supply strain.
• Prices are likely to climb as winter approaches, with a risk of sharp spikes if Europe experiences a cold spell.
• US has warned it could redirect LNG exports if Brussels softens planned methane emissions rules.