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 xx-month low, supported by strong storage levels and a rising supply of LNG (liquid natural gas). EU natural gas inventories had reached over xxx full and were approaching the EU’s xxx target for winter, and with good levels of LNG imports up xxx from the same date as last year, Europe managed to...