European Gas Prices Surge to Two-Year High as Cold Snap Strains Supplies

Low storage levels and increased demand from colder weather drive energy costs higher across Europe, raising concerns over household bills and winter preparedness.

• European natural gas storage levels have dropped to approximately 48.5%, the lowest for this time of year since 2022, with Germany's reserves at 49%.
• A colder-than-average winter and reduced renewable energy output have heightened demand for gas, pushing benchmark prices to their highest since February 2023.
• Analysts predict a potential 20% increase in household gas bills if current price trends persist, though global supply strength may ease costs later this year.
• Europe's reliance on liquefied natural gas (LNG) imports has grown as Russian pipeline gas supplies have dwindled to just 8% of EU imports, down from 40% in 2021.
• Countries like Germany are considering subsidies to incentivize utilities to refill gas storage, while critics warn this may further inflate prices.

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