Energy— Europe Faces Critical Decline in Gas Reserves

As of February 17, 2025, underground gas storage (UGS) facilities in France have reached a concerning occupancy rate of just 24.87%, translating to approximately 3.2 billion cubic meters of gas. This significant depletion places France among the countries with the lowest gas reserves in Europe.

This trend is indicative of a broader crisis across the continent. According to Gas Infrastructure Europe (GIE), the average occupancy rate of European underground gas storage facilities stands at 44.05%, representing a decline of 9.48 percentage points compared to the five-year average for this date. Since the onset of the heating season on October 29, 2024, EU member states have collectively withdrawn around 60 billion cubic meters of gas from storage, with the withdrawal rate on the 111th day of the season being 27% higher than the average recorded in the previous five years.

Other major European nations are also experiencing notable reductions in gas reserves. Germany’s UGS facilities are currently 40.65% full, while Austria, Italy, and the Netherlands report occupancy levels of 54.27%, 55.03%, and 29.79%, respectively. Conversely, some countries have managed to maintain storage levels above average; Portugal is nearing 100% capacity, Sweden is at 88.05%, Spain is at 66.87%, and Poland has reached 55.99%.

The decline in gas reserves can be attributed to multiple factors. A particularly cold winter in 2024-2025 has driven up gas consumption for heating purposes. Additionally, the cessation of Russian gas transit through Ukraine, effective January 1, 2025, has exacerbated the situation, especially for Central European nations like Slovakia and Hungary, which are now seeking alternative supply sources.

In light of these developments, the European Union is contemplating a relaxation of the mandatory targets for filling gas storage facilities. Presently, EU countries are required to achieve a 90% fill rate by November each year. However, financial challenges related to replenishing reserves have prompted some governments to advocate for a reassessment of these targets, suggesting that interim milestones could be made voluntary.

Germany, which boasts the largest gas storage capacity in Europe, is set to engage with traders at the upcoming Essen energy fair to devise strategies aimed at boosting gas stockpiles in anticipation of next winter, given the current low storage levels.

Experts caution that to restore gas reserves to acceptable levels, Europe will need to acquire over 100 additional cargoes of liquefied natural gas (LNG) during the summer months, an endeavor projected to cost around $6 billion. This situation is likely to contribute to sustained high gas prices in the forthcoming months.