Europe's gas reserves refilled at 'bargain price' amid low costs
Lower gas prices are aiding the replenishment of gas storage facilities in Europe, which are empty following the winter, according to experts from Allianz Trade. The storage level averages 34 per cent. Analysts suggest that the EU will need about 25.8 billion cubic metres more gas than in 2024, which translates to an additional cost of €10 billion (approximately £8.4 billion)
According to an analysis by Allianz Trade, Europe currently has a chance to replenish its diminished gas reserves at a significantly reduced cost. The firm notes that after two years marked by intense market fluctuations, the European natural gas sector has entered a more stable phase in 2025, with prices dropping considerably from their winter highs. Nonetheless, due to empty storage, countries still need to allocate additional funds.
Europe is replenishing gas shortfalls. "Bargain price"
It should be noted that after the last winter, storage facilities in EU countries are significantly depleted. The average filling level after the last heating season fell to 34 per cent, the lowest level after winter since 2022.
Earlier in February, gas prices were high due to the cold winter and low wind energy production. Allianz Trade experts observed that the winter of 2024/25 was colder and less windy compared to the previous year, which led to a faster drawdown of gas reserves—even though storage levels had been nearly full by the end of 2024.
Currently, gas has become cheaper, which is advantageous for the summer refilling of storage in Europe. By spring, gas prices had dropped by more than 25 percent compared to their February peak. Analysts attributed this decline to a seasonal reduction in demand, milder weather that lowered heating needs, and an increase in renewable energy production. Despite this relief in the market, they highlighted the continued stagnation in gas-intensive industries—such as chemicals, steel, and fertilizers—with Germany showing a particularly weak recovery in these sectors.
Although current gas prices remain high by historical standards, Allianz Trade experts emphasize that the recent decline offers much-needed relief. They note that this creates a strategic opportunity for Europe to rebuild its gas reserves following the heavy consumption during the harsh winter months.
According to analysts, this decline in demand has put additional pressure on the gas system. As a result, European summer delivery gas futures are hovering around 40 euros per MWh. It should be noted that Europe aims to achieve a 90 per cent storage level by 1 November this year. The EU needs around 57.7 billion cubic metres of gas injected during the refilling season – about 25.8 billion cubic metres more than in 2024. The analysts calculated that at current prices, the additional gas bill would amount to approximately €10 billion (around £8.4 billion).
