Gas storage, in particular Underground Gas Storage (UGS), is instrumental to the security of supply as it provides an additional reserve in case of strong demand or supply disruptions. Typically, storage provides 25-30% of gas consumed in the EU during winter. It reduces the need to import additional gas and contributes to absorbing supply shocks.
Underground gas storage is the first flexibility provider in Europe’s energy system today, creating market value, optimising gas and electricity system costs and ensuring security of supply in case of unexpected supply-demand imbalances.
UGSs are a key resource in supporting a smooth transition to climate-neutrality, contributing to a more flexible energy system, and thus supporting the integration of renewable and low-carbon energy into the energy mix.
With natural gas demand increasing significantly during the winter months, storage facilities operate on a seasonal cycle designed to accommodate both predictable fluctuations and unexpected changes in consumption:
This flexibility helps ensure reliable supply during peak consumption periods and in the event of disruptions caused by adverse weather conditions, infrastructure constraints, or geopolitical developments.
A typical scenario illustrates the importance of storage: in summer, demand is lower and imports may exceed consumption. The surplus is stored. In winter, demand increases and imports may not be sufficient. Stored gas bridges the gap, ensuring supply continuity.
Europe utilises several gas storage technologies:
Gas storage levels in Europe are lower than at the same time last year. By mid-October, EU-wide storage are 74% full, 18 percentage points below the seasonal norm. The reasons date back to last winter: Europe exited the heating season with storage at 27.7% of capacity (Germany at 21%) and required a record ~469 TWh of summer injections to reach even the relaxed 80% target. Injection volumes have fallen short of that requirement. Even at the current historically strong pace, storage levels are likely to remain below the 80% target by November.
This does not necessarily mean Europe will face a gas shortage this winter, but it does mean a smaller safety buffer. As a result, the market will be more sensitive to weather changes, supply disruptions and geopolitical developments, including any escalation around the Strait of Hormuz. We are therefore likely to see continued volatility and sharper price reactions to market-moving news.
The global context will also be crucial. Europe is competing with Asia for LNG cargoes, and supply disruptions linked to tensions in the Middle East have had a stronger impact on Asian markets. In the end, cargoes will flow to the highest bidder. In our view, global competition for LNG will be one of the main drivers of gas prices this winter, potentially outweighing the impact of weather conditions.
Gas storage is a critical element of Europe’s energy infrastructure. By storing gas when supply exceeds demand and making it available when needed, storage facilities enhance security of supply, support market stability, and provide essential flexibility across the continent.
Through the ownership and operation of energy infrastructure and flexibility assets, including gas storage facilities and battery energy storage systems (BESS), as MET Group we support European energy markets, connecting supply, infrastructure, and customers, while contributing to a resilient and efficient energy transition.
Today, our Asset & Renewables segment manages more than 1 GW of operating assets and over 5 TWh of gas storage capacity. Just over a year ago, MET Group acquired 100% of KGE, a natural gas storage operator based in Germany - further strengthening its commitment to investing in natural gas infrastructure. At that time, Benjamin Lakatos, former CEO and currently Executive Chairman of MET Group, commented: “I am delighted with this transaction strengthening our position in the German market. This is an excellent example of how MET can add value to the European gas markets.”