European gas in strong position as winter looms

Plentiful supplies of LNG and weaker competition from Asia mean the continent looks in good shape ahead of the cold season

Europe has enjoyed lower gas prices over the past two months, supported by relatively high storage levels. Barring major demand or supply shocks, the continent is in a good situation as winter approaches, helped by ample global LNG supply and weaker Asian competition. The reprieve follows a sharp price spike earlier this year, driven by the loss of Russian gas transit through Ukraine on 1 January, weaker renewables output and what leading industry figures described as overly rigid EU storage rules. Those regulations distorted prices in the spring as companies scrambled to meet targets, with some speculators exploiting the situation. By accepting Arctic LNG 2 cargoes, Beijing may be tes