European Energy Commissioner Dan Jørgensen urged EU governments to continue curbing energy demand to reduce gas and electricity consumption amid “exceptionally low” storage levels, according to a letter seen by Euronews.
“I invite you to consider taking or continuing to take measures that can sustain injections or reduce gas and electricity demand for as long as necessary,” reads the letter, noting that the situation “has not improved” since Jørgensen’s first warning in March.
The warning comes as EU gas storage is around 70% full, roughly 12 percentage points below the same point last year, according to the latest figures from the trade association Gas Infrastructure Europe. Continued disruption in the Middle East and fierce competition from Asia for liquefied natural gas (LNG) cargoes are pushing prices up, threatening a supply crisis.
The Dutch TTF, the European benchmark for natural gas prices, is trading at around €72 per MWh, up €40MWh since the United States and Israel bombed Iran on 28 February. Analysts are warning of potential spikes above €100/MWh during peak winter if LNG export volumes from the Gulf fail to grow or if Norwegian maintenance prolongs export constraints.
