Sky’s the Limit for European Natural Gas Prices this Winter, Wood Mackenzie Says

European natural gas stockpiles could be completely drained over the next few months, leaving the continent wholly dependent on Russian pipeline imports if this winter turns out to be unseasonably cold in both Europe and Asia, according to an analysis from Wood Mackenzie.

Colder winter weather across the globe could raise European heating demand to 20 billion cubic meters (Bcm) and redirect up to 10.5 Bcm of cargoes from the continent to Asia. Combined, that would be greater than the 29 Bcm Wood Mackenzie anticipates would be in European storage at the end of March.

“There is a risk storage levels could drop to zero,” said Wood Mackenzie Vice President of Gas and LNG Research Massimo Di Odoardo.

If that happens, Europe would have to rely on “timely approval” of the