Netherlands cuts gas storage target as Europe braces for tough winter

European industry is heading into a difficult winter as a fresh spike in energy costs threatens to shut down factories across the continent. Benchmark Dutch TTF natural gas futures surged above €80 per megawatt-hour in early September, the highest level since January 2023, after nearly doubling since the onset of the US-Iran conflict disrupted shipping near the Strait of Hormuz.bloomberg+1

The price surge comes as EU gas storage levels lag well behind seasonal norms. As of early September, European underground storage facilities stood at roughly 67% of capacity, about 15 to 19 percentage points below the five-year average of around 82% for this time of year, according to data from Gas Infrastructure Europe.global-energy-flow+1

Storage Shortfalls Across the Bloc

Germany and the Netherlands, two of Europe's largest gas consumers, are among the worst positioned. Germany's reserves hit a historic low of 47% of national capacity in August, making it what analysts have called the most vulnerable link in Europe's supply chain. The Netherlands, meanwhile, saw storage levels stuck near 45% in late August — the lowest in records going back to 2009 — prompting network operator Gasunie to confirm the country would miss its original 80% filling target.xab+2

On September 10, the Dutch government lowered its stockpiling target by 10 percentage points to 64% of capacity, responding to a European Commission call for countries to reduce filling goals in an effort to ease upward pressure on wholesale prices.bloomberg

Industry Warnings and Fuel Rationing

The impact is falling hardest on energy-intensive sectors. Producers of chemicals, steel, and aluminium from the UK to Germany say soaring bills are turning once-manageable costs into existential threats, according to the Deccan Chronicle. One UK aluminium maker reported that energy now accounts for nearly a fifth of its total costs, while a major chemicals firm warned that continued high prices could force it to close its last British plant.deccanchronicle

Slovenia in March became the first EU country to introduce government-mandated fuel rationing, limiting private drivers to 50 litres per day and businesses to 200 litres, a measure prompted by cross-border "fuel tourism" and supply disruptions linked to the Middle East conflict, Reuters reported. Slovenian Prime Minister Robert Golob said there was enough fuel in the country and warehouses were full, framing the move as precautionary rather than a sign of shortage.reuters+1

Energy analysts at Rapidan have warned that without stronger market intervention, EU storage could reach only about 65% of capacity by November — well short of the bloc's relaxed 80% target for this winter.xab