Europe's efforts to restock natural gas ahead of winter are becoming increasingly difficult

Glonghui July 16｜According to reports, as the war in Iran drives up prices, it has become increasingly difficult for Europe to fully replenish its natural gas reserves, and traders’ profit margins for buying and storing gas before winter are being squeezed. The conflict has seriously disrupted LNG transport traffic through the Strait of Hormuz, which previously handled about 20% of the world's liquefied natural gas (LNG) shipments. Meanwhile, Iranian attacks have destroyed 17% of Qatar’s LNG export capacity. Since the outbreak of the war, European natural gas prices have soared by more than 70%. Currently, storage levels at natural gas facilities across the EU are around 52%, with injection rates lower than both the same period last year and the average for the past 10 summers, raising market concerns that some countries may struggle to rebuild their reserves.