EU Natural Gas

European natural gas prices were at pre-Ukraine war levels of €70/MWh in mid-January, down nearly 50% from their December peak and a fifth of records levels set in August, as warmer-than-expected temperatures eased concerns over shortages and the need for gas rationing. Yet, Europe is set for the warmest January in years. At the same time, record LNG imports, a rise in renewable capacity, namely from wind power in Germany, lower consumption and energy-saving measures helped to keep storages full. Gas storages across Europe hovered around 83% full in the last weeks, up from 50% a year ago and well above the five-year seasonal norm of 70%. Although the worst seems to be over for now, the outlook for 2023 remains challenging as a cold snap could raise heating demand. Also, Europe needs to increase its LNG import capacity and continue to attract LNG deliveries, at a time the Asian premium increased. Also, a rise in gas demand from China could increase competition in the LNG market.

Historically, EU Natural Gas reached an all time high of 345 in March of 2022. EU Natural Gas - data, forecasts, historical chart - was last updated on January of 2023.

EU Natural Gas is expected to trade at 77.11 EUR/MWh by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 105.14 in 12 months time.