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European gas prices top EUR70/MWh as low storage tightens outlook

ING expects EU inventories to start the heating season around 72% to 73% after storage was about 65% full at end-August, a level that could spur faster purchases.

Reported · Written up by our desk · Energy

European gas prices have risen above EUR70/MWh, with ING pointing to tighter global supply as lower Persian Gulf LNG availability and strong Asian spot demand reduced EU LNG imports by about 16% year-on-year between April and July.

The bank also highlighted storage conditions, saying EU inventories were around 65% full at the end of August versus an 82% five-year average, which it views as leaving limited downside for prices into winter.

ING projects inventories of about 72% to 73% at the start of the heating season, below the headline 90% target and potentially below a more flexible 75% threshold.

With slower injections leaving some member states likely to accelerate purchases, ING said freight economics could support spot LNG flows to Europe and help imports stabilize and recover on a month-to-month basis.

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