EU Energy System to Cope This Winter but Tighter Next Summer: Engie

Europe’s energy system is expected to cope this winter, even in a cold scenario, but faces some tightness next summer amid higher Asia demand, said Ana Requeman at Engie cited by Montel.

• The current gas storage position is comfortable due to sufficient supply and demand destruction following the energy crisis but “the difference between a mild winter and a cold winter could add up to 20bcm gas demand globally.”
• Lower price levels had boosted Asian LNG interest, mainly from China and India,
• “With increasing demand outside Europe, we believe summer 2025 might be a bit more challenging in terms of being able to fill storages at the levels that we’re seeing now,” Requeman said.
• The gas market is expected to remain tight until a shift to an oversupply in 2027.
• The US could become the “main contributor” to liquefaction growth rising to 27% of global energy supply but faces uncertainties such as the US policy on new LNG projects, Requeman added.
• Geopolitical tensions in the Middle Eastern and potential EU sanctions on Russian LNG are upside risks.