Equinor CEO says Europe will miss winter gas storage goal

European natural gas prices continued their relentless climb on Wednesday, with the benchmark Dutch TTF contract trading above €60 per megawatt hour after surging roughly 47% over the past month, as heatwave-driven demand and dwindling winter storage prospects rattled a market already stretched thin by the U.S.-Iran conflict's disruption to global LNG flows.

Equinor Warns Storage Target Out of Reach

Equinor ↗ 2.61% CEO Anders Opedal warned on Wednesday that Europe is unlikely to reach its 80% gas storage target before winter, citing market tightness and intensifying competition from Asian buyers for limited LNG cargoes, according to Reuters. The warning echoed earlier statements from the company's finance chief in May, who said Europe's gas market would remain "vulnerable to weather events and operational issues" if storage fell short.Argus Media+1

EU gas storage sites sat at roughly 54% of capacity as of late last week, well below the five-year seasonal norm of about 67%. Industry analysis from Wood Mackenzie, reported by the Financial Times, projects inventories will reach only about 76% by late October — which would represent the continent's weakest pre-winter gas cushion in at least 15 years.Global Energy Flow+1

Asia Outbids Europe for LNG

The supply crunch has been compounded by a surge in Asian LNG demand. According to Reuters, Asia's LNG imports are set to hit a six-month high in July while Europe's imports have plunged to their lowest in nearly two years. U.S. LNG shipments to Asia are expected to reach a record 4.23 million tons in July, roughly three times February's levels, leaving European buyers scrambling.Reuters

The competition traces back to early 2026, when the Iran conflict disrupted Qatari LNG exports and effectively removed roughly a fifth of global supply from the market. Ship-tracking data earlier this year showed tankers redirecting mid-voyage from Europe toward Asian ports offering higher prices.Euronews+1

Heatwaves Add Pressure

Successive heatwaves that have swept Europe since late May have boosted gas-fired power generation demand, further straining injection rates into storage. TTF prices stood near €46 per megawatt hour in early July before the latest leg higher, driven by forecasts for continued extreme heat and renewed uncertainty over Strait of Hormuz shipping lanes.TradingPedia+2

The EU's Gas Coordination Group said on June 30 that reaching 80% storage would be "sufficient to secure gas supply for next winter," while acknowledging levels remain below pre-crisis averages. But with prices now approaching the peaks reached during the early weeks of the Iran conflict in March, traders are pricing in the growing probability that even that reduced target will be missed.Energy