Equinor Warns Europe's Gas Storage Vulnerable to Prolonged Hormuz Disruptions

Europe faces a critical risk to its natural gas reserves if shipping disruptions through the Strait of Hormuz continue for another one to three months, according to senior executives at Norwegian energy major Equinor ASA. The continent commenced the current summer refill season with gas storage levels significantly depleted, standing at only 28% capacity following an extended winter period. Current European gas storage sits at 35-37%, a considerable margin below the typical seasonal average of 50%. This deficit heightens the likelihood that Europe will fail to achieve its customary 90% storage target by the onset of winter. The Strait of Hormuz is a crucial chokepoint for global energy flows, and any sustained interruption of transit through this waterway would impact global liquefied natural gas (LNG) supplies. While the immediate focus is on European inventory, the interconnectedness of global gas markets means that reduced availability or rerouting of LNG cargoes due to Hormuz issues would inevitably drive up spot prices and increase competition for available supplies. Europe's reliance on LNG imports, particularly following shifts away from Russian pipeline gas, amplifies its exposure to such maritime choke point risks. The challenge is compounded by the pre-existing low base of storage, requiring a more aggressive refill pace than usual. Missing the 90% target would leave Europe particularly susceptible to price volatility and potential supply shortages during peak winter demand, especially if cold weather materializes. Energy security remains a paramount concern for European policymakers, and this warning underscores the ongoing fragility of the continent's energy supply chain despite efforts to diversify sources.