D.TRADING’s James O’Brien on Europe’s Growing Competition for LNG Ahead of Winter
In an article published on 3 September, Bloomberg examines the growing challenge facing Europe as the region seeks to rebuild gas inventories amid constrained global LNG supply and intensifying competition for available cargoes. According to Bloomberg calculations, Europe still needs more than 100 TWh of gas, worth over €7 billion at current prices, to reach even the lower storage target of 75%.
The situation is being compounded by disruptions to Persian Gulf LNG supplies and uncertainty over how quickly flows can recover. At the same time, Europe could face stronger competition for cargoes from Asian buyers as winter approaches. Bloomberg notes that India has already increased LNG imports significantly, while Taiwan, Thailand and South Korea are also securing additional supplies for the coming months.
Against this backdrop, European prices may need to rise further to attract sufficient LNG and rebalance global flows.
The challenge is particularly significant given Europe’s current storage position. While preparedness differs considerably between countries, inventories remain unusually low in several key markets. Germany’s storage facilities, the largest in Europe, are only slightly more than half full, while the Netherlands and Belgium are also below typical levels. This could increase European import requirements during the winter and add further pressure to competition for global LNG supply.
The market is also preparing for another structural shift in January, when the EU ban on Russian LNG is expected to remove volumes equivalent to around 5% of the bloc’s gas requirements. At the same time, lower Chinese LNG demand could provide some additional flexibility for Europe, with higher European prices beginning to attract more supply.
For D.TRADING, developments in the global LNG market remain central to understanding Europe’s evolving energy security and the interaction between regional gas fundamentals and international competition for supply.
Read the full Bloomberg article: https://www.bloomberg.com/news/articles/2026-09-03/europe-s-gas-gamble-risks-higher-prices-in-global-supply-fight
