EU LNG imports fall 18% in June as Gulf outage drags on

Europe's liquefied natural gas imports declined sharply in June 2026, dropping roughly 18% compared with the same month a year earlier to approximately 7.5 million metric tons, as the prolonged loss of Qatari production following Iran's attacks on Persian Gulf infrastructure continued to reshape the continent's energy supply landscape.

Hormuz Disruption Tightens Market

The decline marks the third consecutive month of year-over-year drops in EU LNG arrivals, a reversal from the strong growth that characterized 2025 when imports surged 27%. The shortfall traces directly to the conflict that erupted in early March, when Iran struck key gas infrastructure in Qatar, Saudi Arabia, and Kuwait, halting Qatari LNG production — which accounted for roughly 80 million tonnes per annum, or about 19% of global LNG supply. Lloyd's List reported in March that the disruption could last years rather than months, with the Strait of Hormuz — handling approximately 20% of global LNG traffic — effectively closed to tanker traffic.energynow+2

The United States has filled much of the gap, accounting for nearly 59% of EU LNG imports during the first half of 2026, up from about 55% in the first half of 2025. Nigeria has emerged as the bloc's third-largest LNG supplier after Qatar was largely sidelined, benefiting from expansion projects including the Nigeria LNG Shell plc ↘ 0.02% Train 7 development.globallnghub+2

Gas Futures Rally on Heat and Geopolitics

European natural gas futures extended their rally on Thursday, with the front-month Dutch TTF ICE ↗ 0.54% contract climbing 2.2% to 43.43 euros per megawatt-hour, near a three-week high. The British equivalent rose 1.8% to 103.54 pence per therm.investing

The rally was driven by two forces: an intensifying heatwave across continental Europe that has boosted electricity demand and strained nuclear and renewable output, and the abrupt breakdown of indirect U.S.-Iran peace negotiations in Doha the previous day, which revived concerns over the Strait of Hormuz.europeangashub+1

Storage and Outlook

Gas-fired power generation has returned to prominence as soaring temperatures increase electricity demand while nuclear and renewable sources face weather-related constraints. EU gas storage stood at roughly 59% of capacity at the end of June, and analysts expect above-average temperatures to persist into mid-July.wsj+2

The supply picture remains uncertain heading into the second half of 2026. Kpler had initially forecast European LNG imports reaching 145 million tonnes for the full year, a target now in doubt given the sustained Persian Gulf outage. Meanwhile, the EU's ban on Russian LNG imports under long-term contracts takes effect January 2027, adding further pressure to an already constrained market.euronews+2