Europe's Gas Woes Deepen: Old Winter Strategy No Longer Viable

Europe's traditional tactic of buying cheap summer gas to resell at a profit in winter is no longer working. Reserves are critically low, and reliance on volatile supplies increases the risk of soaring bills.

Europe faces a winter with one of its key energy defenses weakened. For the second consecutive year, the strategy of accumulating gas during months of lower demand to ensure supply and control prices during the cold season has been compromised. The loss of Russian gas and geopolitical tensions in the Middle East, affecting liquefied natural gas (LNG) supplies, have diminished the continent's response capacity.

## Reserves at Record Lows

Gas storage facilities in Europe are currently at **71%** of their capacity. This figure is significantly below the seasonal average, which typically hovers around **87%**. The situation is particularly concerning in **Germany**, where storage levels barely reach **57%**. These low percentages highlight the system's fragility in the face of a harsh winter or any unforeseen supply disruptions.

## New Strategies and Risks

Faced with this outlook, several European governments are considering the creation of state-funded or state-backed strategic gas reserves. Currently, only nine **European Union** countries have such reserves, and their volume barely covers **13 days** of average consumption. The latent risk is that, with high demand and limited supply, Europe may be forced to compete for LNG shipments at very high prices, potentially sending energy bills soaring again and reigniting inflationary pressures.