... renewable energy output, increasing reliance on gas. Bloomberg models predict a sharp drop in wind generation in Germany, leaving gas-powered plants to fill the gap. Moderate Heating Demand While heating demand remains subdued due to mild temperatures, gas storage facilities in Europe are nearly full (95%), which has so far helped contain price increases. Key Factors Shaping the Market Weather Uncertainty Temperatures play a critical role. The last two winters in Europe were unusually warm, but there ...

... current situation highlights the critical need for Europe to not only diversify its suppliers but also reduce its dependence on volatile LNG markets. This may require a shift toward more localized energy solutions, such as renewable sources and strategic gas storage capacities. Potential European Responses to Noncompliance Introducing Stricter LNG Contract Terms To mitigate the risk of future LNG diversions, European importers might revise contract terms with U.S. suppliers to include stricter penalties for ...

... that weather is a significant factor in gas prices. "Prices here are cyclical: they rise in the autumn and winter, then decrease by the end of March and into early summer, and after that, they rise again as the EU starts filling its underground gas storage facilities before the new heating season," he said. He noted that this year, attention is focused on geopolitics, as there is still no clarity about whether contracts for Russian gas supplies via Ukraine will be extended. A decision on ...

... Europe continues to rely on external gas supplies, such disruptions may recur. Recent events emphasize the necessity of diversifying suppliers and seeking internal energy stability, for example, through the development of renewable sources and increased gas storage capacity. Possible Measures in Response to Breach of Contracts Strengthening Contract Terms European companies may reconsider the terms of agreements with American suppliers, incorporating stricter penalties for shortfalls. This would reduce the ...

... situation significantly impacted Gazprom's performance in the first half of 2025. Following the price volatility of gas in 2022–2023, a relative stabilization was observed in 2024–2025, although prices remained below peak levels. The dynamics of gas prices in Europe at the beginning of 2025 were characterized by a relatively mild winter and high storage inventories, which kept export prices at moderate levels. However, Gazprom's direct exposure to the European spot market diminished due to the decline in physical export volumes to Europe. Geopolitical factors and gas exports also set the tone ...