The European Union faces an extra cost of around 10 billion euros ($11.2 billion) to refill its natural gas storage this year, according to the Financial Times. This estimate is the best-case scenario, and the actual cost could be much higher.
The higher expense comes after a colder-than-usual winter in 2024-2025. This winter drained the EU’s gas reserves far more than the previous two milder winters, when storage levels remained comfortable. By the end of this winter, gas in storage fell to nearly 30%, a dangerously low level. Now, the EU must buy more liquefied natural gas (LNG) to refill its reserves.
An analyst from Allianz Trade told the Financial Times, “Europe had the first real winter since the war in Ukraine.” He noted that lower wind power generation during the winter increased demand for natural gas. Wind power is still underperforming.
This higher gas demand pushed U.S. LNG exports to Europe to a record high in the first four months of 2025. European gas prices were often higher than Asian spot LNG prices, attracting more shipments to Europe. At the same time, demand for LNG in China and other parts of Asia was weak, which helped Europe because there was less competition for LNG cargoes than in past years.
European gas buyers hope this situation does not change as summer approaches. The seasonal peak in electricity demand for cooling could increase LNG competition. Last year, the EU’s gas import bill reached 100 billion euros ($112 billion), about one-eighth of the amount Brussels plans to spend on military rearmament.
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