EU Natural Gas Prices Surge as Reserves Hit 2009 Lows

European natural gas futures rose for a second consecutive day as the European Union began drawing on seasonal stockpiles that have reached their lowest levels since 2009. Dutch front-month futures breached 90 euros per megawatt-hour, nearly tripling the prices seen last winter.

Gas Infrastructure Europe reports that storage sites across the region are approximately 74% full. Germany is particularly vulnerable, with reserves at only 61%, a figure significantly below the 15-year average. This shortage leaves the region exposed to severe cold snaps and ongoing disruptions to liquefied natural gas supplies around the Strait of Hormuz, which has forced the EU to compete with Asian buyers for available shipments.

Goldman Sachs warns that prices could soar to 150 euros if Gulf LNG exports remain at 25% of normal levels and heating demand increases during a severe winter.