Europe grapples with low gas storage levels. German government prepares measures to safeguard security of supply

With disruptions to liquefied natural gas (LNG) supplies from the Persian Gulf continuing, Europe is still facing strong competition from demand in Asia. LNG deliveries to Europe have therefore been relatively weak in recent months, negatively affecting gas storage levels. It is already almost certain that Europe will not fill its storage facilities to 90% before winter, as it did in previous years. Amid growing concerns over security of supply, the German government is reversing course and no longer wants to leave the solution to the market alone. The situation in neighbouring Germany is also significant for security of supply not only in Czechia, but across Europe.

After Europe lost the vast majority of its natural gas supplies from Russia in recent years, it suffered another blow this year. The global liquefied gas market has faced significant supply restrictions since the start of the war between the US and Iran. Before the war broke out, Qatar and the United Arab Emirates accounted for roughly one-fifth of total LNG volumes supplied to the market.