Equinor Warns 1-3 Month Hormuz Closure Could Turn Europe Gas Stocks Critical
Updated
Updated · Reuters · May 21
Equinor Warns 1-3 Month Hormuz Closure Could Turn Europe Gas Stocks Critical
6 articles · Updated · Reuters · May 21
Europe’s gas storage is only just above 35% full, and Equinor said a Strait of Hormuz disruption lasting one to three months from now could push inventories into critical territory.
A quick reopening could still leave Europe at a tight but acceptable 75% storage level, far short of the EU’s 90% target for October to early December.
Refilling has stalled because summer gas is priced above winter contracts, weakening the incentive to inject fuel into storage despite already low inventories.
Prices near 60-70 euros per MWh could cut gas-for-power demand by about 10 billion cubic metres through coal switching, more renewables and lower industrial use, Equinor said.
Dutch TTF gas was around 50 euros/MWh on Thursday after peaking at 74 euros/MWh in March, underscoring how another supply shock could tighten Europe’s winter outlook.
Is Europe's energy security now hostage to the volatile Strait of Hormuz chokepoint?
Will Europe sacrifice key industries or its climate goals to keep the heat on this winter?
How will the Hormuz crisis threaten global food prices through a looming fertilizer shortage?
Europe’s 2026 Gas Crisis: Geopolitical Shocks, Storage Lows, and the Urgent Push for Energy Security and Transition
Overview
Europe is at a critical point in its gas supply, with volatile prices and warnings from Equinor about the risk of insufficient storage for winter. Recent geopolitical conflicts, including US and Israeli attacks on Iran, have disrupted global energy flows, especially through the vital Strait of Hormuz. These disruptions have led to reduced LNG inflows, causing European gas inventories to remain low and prices to surge. As a result, industries are switching fuels and cutting gas demand, while governments scramble to secure energy and rethink long-term strategies. The crisis highlights Europe's vulnerability and the urgent need for a resilient, diversified energy system.