London Daily

Focus on the big picture.
Wednesday, Jun 24, 2026

Energy crisis: European gas storage levels at record highs - and it suggests good news for supplies

Energy crisis: European gas storage levels at record highs - and it suggests good news for supplies

Record gas storage levels this year are unlikely to mean prices drop to levels seen before the pandemic and the Ukraine war, but energy security has improved after months when the UK worried about keeping the lights on.

Energy costs could come down as European gas storage facilities are expected to end the winter season at a record of more than 50% full.

Modelling done by energy consultancy Cornwall Insight suggests gas supplies are secure after concerns of shortages following Russia's invasion of Ukraine.

Fuller storage units mean less future demand for gas, which can bring down prices.

Storage facilities across Europe will end winter between 45% and 61% full - an average of 55% capacity - bypassing the previous end of winter record of 54% in 2020.


Following the start of the conflict in Ukraine, European countries raced to reduce their reliance on Russian gas, which pushed up prices and led to concerns about energy supplies in winter 2022 to 2023.

Having a greater amount of gas in storage means more is ready for winter 2023-2024 and less needs to be bought, leaving supplies more secure than in 2022.

It is a doubling from last year.

On 31 March 2022 just 26% of European storage facilities were filled, according to data from Gas Infrastructure Europe.

There was concern that the lights could not be kept on amid gas shortages. In the UK the National Grid's Electricity System Operator had warned in October that planned three-hour power blackouts could be imposed in the event of gas supplies falling short of demand.

To reduce energy demand and cope with potential shortages, EU countries formally agreed a voluntary 10% cut in gross electricity consumption and a mandatory reduction of 5% during peak use hours.

But high gas storage levels this year do not mean prices will drop to lows seen at the end of previous high storage-level winters.

Despite the "considerably more positive" forecasts, the lead research analyst at Cornwall Insight said he was cautious about saying Europe is over the worst of the energy crisis.

"Any single factor can influence the pace and pattern of storage refill, and perhaps more pertinently, change the cost paid to achieve it," Dr Matthew Chadwick said.

"We are certainly not out of the woods yet."

Factors that could bring up energy costs include weather, US exports, Chinese demand and Russian supplies.

While a mild winter helped preserve gas stocks, a summer with heatwaves would bring energy demand for air-conditioning and fans.

Imports of US liquified natural gas in the second half of last year rose significantly as reliance on Russian gas waned. Going forward, however, the US is under domestic pressure to protect consumers from price rises, which could mean less exported to Europe.

Russian gas is still relied on by Europe and will continue to be needed.

The reopening of China, following nearly three years of lockdown restrictions, and the associated economic growth will impact energy markets, the Cornwall Insight report said, though the impact is uncertain.

For those looking to hear good news about bills, Dr Chadwick is not the barer.

"Whatever the outlook for storage levels, the need to compensate for Russian pipeline volumes with expensive and volatile liquified natural gas will keep gas bills higher," he said.

"This, at least for now, is the "new normal", and consumers and economies should prepare for energy costs to remain higher than before the pandemic, and the Ukraine war, for some time to come."

Households can expect prices to be "more muted" than last year, Dr Chadwick said, as the panic from the Ukraine war outbreak subsides.

"What may ease this year is the heightened level of understandable panic that led to hectic energy-buying practices during the autumn of 2022.

"As a result, we can probably expect prices to be much more muted than 2022, despite any uncertainties that may come into play."

Gas storage facilities in the UK include Rough, a facility reopened this year off the Yorkshire coast, and the Stublach onshore facility in Cheshire.

Newsletter

Related Articles

0:00
0:00
Close
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
UK Economy Sees Unexpected Rise in Business Investment in Second Quarter, ONS Data Shows
Scottish Government Unveils Multi-Billion Pound Investment Plan for Renewable Energy and Grid Expansion
UK and EU Agree Enhanced Defence Cooperation Pact Covering Intelligence and North Sea Security
Prime Minister Orders Independent Review of NHS Performance After Record Waiting Lists
Bank of England Holds Interest Rates at 5 Percent as Services Inflation Remains Persistent
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
×