European gas price tops 100 euros per MWh for first time since 2022 as Brussels warns of new energy crisis

By Wednesday afternoon, the price of natural gas in Europe had crossed 100 euros per megawatt-hour for the first time since December 2022, as the next-month contract at the Dutch trading hub—the continent’s benchmark—rose by about 4 percent compared with yesterday’s close, driven by tight supplies as winter approaches.

The price is roughly three times its level before the outbreak of the war on Iran in late February, when it was around 32 euros, although it remains far below its record peak of about 340 euros in August 2022, during the energy crisis that followed Russia’s war on Ukraine.

Jørgensen: Europe faces another energy crisis

The rise came hours after comments by EU Energy Commissioner Dan Jørgensen in Brussels this morning, following a meeting with representatives of European oil refineries. He said Europe is once again facing an energy crisis due to geopolitical disruptions and that fuel bills in EU countries are rising sharply, adding that this winter will be difficult for European citizens and for the economy in general.

Jørgensen said the Commission expects the global diesel market to remain tight through 2027, which will keep prices elevated, noting that about a quarter of European refineries have closed over the past two decades, and that Brussels will work with the sector to increase output at existing refineries to lower fuel prices.

Troubled Qatari supplies and low stocks

The pressure on the European market is mainly due to disruptions to liquefied natural gas shipments from the Gulf, led by Qatari cargoes, and was intensified by Italy’s Edison announcing yesterday that QatarEnergy had extended force majeure on its shipments until the end of next December, adding three more cargoes to the quantities that will not reach Italy, in a continuation of an upward trend we covered in a report. European gas near 93 euros at highest level since 2022 as storage filling stops.

Storage fill rates for gas in EU countries stand at about 75 percent, while in Germany they are around 60 percent—levels far lower than last year—at a time when the continent has entered the heating season, when demand typically rises.

EU energy ministers meet tomorrow, Thursday, in Luxembourg with an agenda item to exchange views on energy security for the winters of 2026 and 2027 and on the longer term, amid growing concern over the impact of high prices on household bills and energy-intensive industries.