EU gas stores enter winter at 13-year low as UK storage sits nearly empty

Benchmark European gas price climbs past €68 per megawatt-hour, doubling year-to-date

The European Union’s gas storage facilities sat 63% full in the final week of August, the lowest level recorded for that point in the year in 13 years, leaving the bloc poised to enter the winter heating season with reserves roughly a fifth below the five-year average. Gas analyst Greg Molnar said low storage levels were “naturally increasing the risk of heightened winter price volatility,” a risk analysts said could intensify if cold spells or sluggish wind patterns drive up gas consumption across the continent.

The United Kingdom faces particular exposure to market swings because it is one of Europe’s largest gas consumers but holds some of the lowest domestic storage capacity on the continent. Chris O’Shea, chief executive of British Gas owner Centrica, said this week the UK had “almost no gas in storage” for the coming winter. The UK typically relies on imports arriving via pipeline from Europe and on tanker shipments of liquefied natural gas from the United States and the Middle East.

Benchmark European gas prices climbed above €68 per megawatt-hour in recent weeks, more than double the level at the start of 2026. Analysts at Goldman Sachs projected the benchmark price would “likely need to move above €100/MWh” to attract sufficient LNG shipments to meet winter demand if Middle Eastern exports do not resume.

European gas stores have struggled to rebuild toward the bloc’s 80%-full winter target since the military conflict involving the US, Israel, and Iran triggered severe disruption to oil and gas exports from the Gulf region. A cold end to the previous winter and elevated gas-fired power generation during Europe’s summer heatwaves have further depleted reserves. Bjarne Schieldrop, chief analyst for commodities at Nordic banking group SEB, said Europe’s gas market had “run into a bit of a winter panic over the past week” as traders weighed the prospect of competing with Asian buyers for cargoes.

Storage levels vary widely across the continent. Italy and Poland have topped up their reserves to more than 80% full. Germany, which holds Europe’s largest storage capacity, sat roughly half-full, according to Gas Infrastructure Europe. Belgium and the Netherlands, which connect directly to the UK gas market via pipeline, stood at 51% and 45% respectively.

The UK government is considering direct financial support for domestic gas infrastructure after an official consultation found that homes and businesses risk running out of gas within the next decade, despite growing clean energy sources. The plan could include financial support for storage facility owners and pipeline operators to make it economically viable to upgrade and maintain them in the decades ahead. UK energy regulator Ofgem said this week that typical gas and electricity bills will rise 4% from October under its quarterly cap, after climbing 13% at the start of July, to take account of global energy market price rises caused by the military conflict involving the US, Israel, and Iran.

The UK’s reliance on global gas imports is expected to deepen as production from the North Sea sector declines and Norwegian output begins to fall from 2030. Centrica chief Chris O’Shea has publicly flagged the country’s thin reserve position heading into this winter.