Europe’s Natural Gas Game: Steady Prices, Strong Imports, Winter Watch Begins

Key Highlights

• In early September, European natural gas prices remained steady supported by strong levels of LNG imports and good storage levels
• The U.S. LNG exports and infrastructure projects—such as Equinor’s bookings of the Mukran terminal—augmented regional energy security.
• Traders are still a little wary of expected volatility related to general uncertainty around weather and renewable energy shortfalls.

European natural gas markets remained steady in first week of September, largely reflecting a precarious state of balance between strong supply fundamentals, and seasonal risks underneath. Natural gas prices remained stable at or near a **-month low, supported by strong storage levels and a rising supply of LNG (liquid natural gas). EU natural gas inventories had reached over *** full and were approaching the EU’s *** target for winter, and with good levels of LNG imports up *** from the same date as last year, Europe managed to...