Europe is unlikely to meet its target of filling gas storage facilities to 80% before the start of the heating season.
This was stated by Anders Opedal, CEO of Norwegian energy company Equinor, Reuters reports.
According to the company chief, the current situation on the global gas market remains tight, and rising demand from Asian countries is creating serious competition for supplies of liquefied natural gas (LNG).
"We do not believe that Europe will necessarily be able to fill its reserves to more than 80% this autumn," Anders Opedal noted.
European gas storage facilities are currently about 54% full. This is well below the average for the past five years, the second-lowest level in the past 15 years, and nearly matches the historical low for this period recorded in 2021.
Equinor warns that low inventory levels could make the European market more sensitive to potential spikes in gas prices in winter.
One of the main reasons for the situation is a shift in the direction of liquefied natural gas supplies. A significant share of LNG that previously went to Europe is now being redirected to Asian countries, where buyers are willing to pay a higher price.
"Gas that was supposed to come from Qatar is now going to Asia. Accordingly, LNG volumes that were previously supplied to Europe are also being redirected to the Asian market," Opedal explained.
According to the company, liquefied natural gas accounts for about 30% of all gas imports to Europe. Therefore, a reduction in supplies could significantly affect the region’s energy security during the autumn and winter period.