European natural gas prices declined toward €71 per megawatt-hour, the lowest level in a month, as softer Chinese demand eased pressure on an already tight global market. China’s LNG imports are expected to fall for a second straight month, with September deliveries projected at about 5.3 million tons—around 8% less than a year earlier—as elevated prices linked to the Middle East conflict curb spot purchases.
At the same time, Europe is under mounting pressure to replenish gas inventories ahead of winter, with storage levels unusually low and vulnerability heightened by the fact that roughly one-fifth of global LNG supply typically passes through the Strait of Hormuz. EU storage sites are about 71% full, well below the five-year seasonal average of 87%, while Germany’s facilities stand just above 57%. In response, the EU has urged member states to conserve energy and continue injecting gas into storage.
On the supply side, QatarEnergy has extended its force majeure on LNG deliveries to Italy’s Edison until December, and Pakistan’s supply arrangements have been prolonged into November due to ongoing shipping disruptions in the Strait of Hormuz.
