FX.co ★ European Natural Gas Holds Near 20-Month Low

In early January, European natural gas prices hovered around €28 per megawatt-hour (MWh), staying fairly close to the 20-month low of €26.8 observed in mid-December. This is attributed to sufficient supply levels, which have tempered asking prices in Europe’s primary gas markets. The previous year saw record-high gas production in the United States, coupled with newly established supply agreements with Middle Eastern producers. Consequently, Europe experienced a 28% annual increase in liquefied natural gas (LNG) imports in 2025. This surge in LNG supply, alongside consistent deliveries through Norwegian pipelines, bolstered alternative energy sources in Europe as part of the continued shift away from Russian supplies that began in 2022. On the demand side, predictions suggested that lower winter temperatures might ease later in January, potentially reducing the need for gas-intensive heating. Despite this, stock levels remained significantly below their five-year average, dropping to less than 60%.