Higher gas prices hamper Europe's preparation for next heating season – Bloomberg

High prices for natural gas may prevent Europe from replenishing its reserves in time to prepare for the next winter, Bloomberg columnist Javier Blas warned. According to him, despite the traditional drop in demand in spring and summer, which normally contributes to the active storage filling, the current situation is complicated by high prices and the absence of supplies from Russia.

After the cold winter, the regional gas inventories have fallen below the long-term annual average. On this background, Europe faces the need to buy more fuel on the spot market. However, as Blas notes, due to the termination of Russian pipeline gas supplies, Europe has to spend more on its energy imports.

The analyst estimates that volumes of gas pumped into storages remain low. Since November 2024, there have been no price incentives for early capacity reservations, so many companies have opted out of long-term contracts. Although it is expected that the pace of depleting gas reserves in Europe will increase in April, it may not be enough to form a reliable reserve for the next heating season, the expert concluded.