Natural gas stocks are falling fastest this year since 2016

Natural gas stocks in Europe are falling at their fastest rate since 2016 as a result of cold weather and low renewable energy generation. Spot prices and futures prices for summer 2025, when storage facilities will be replenished, are both rising.

Cold weather is increasing natural gas consumption for heating. Low generation from renewable energy sources in Europe has increased natural gas consumption for electricity generation.

As a result, natural gas stocks in European storage facilities are falling at their fastest rate since 2016, according to data from Gas Infrastructure Europe. However, storage levels are higher than at the same time in 2021. In 2021, storage facilities reached a maximum fill level of around 77%, compared with 95% this year.

According to an analyst at the Centre for Research on Energy and Clean Air, this has caused a “significant, sharp increase in spot prices”, which have risen by around 40% since September.

According to analyst Johan Kemp, higher prices resulting from the current increase in natural gas consumption could persist until summer 2025, when natural gas storage facilities are replenished. This can be seen in both rising spot prices and prices for futures contracts on natural gas.