Volatile energy markets drive prices – gas supply remains stable

Volatile energy markets drive prices - gas supply remains stable

Developments in the Middle East and the current disruption of the Strait of Hormuz as a vital LNG trading route have tangibly influenced global energy markets in recent weeks. As seen during previous geopolitical tensions, energy markets react very swiftly to uncertainty, which translates directly into price increases. At the same time, the physical supply situation remains stable: gas continues to flow via existing import and transit routes and has been moving into storage since the beginning of April. Furthermore, most end customers have fixed-rate tariffs with their utilities and are not affected by global market fluctuations.

Gas infrastructure in Europe: available, interconnected, and utilized

Compared to 2022, Europe today possesses significantly expanded LNG import capacities. This has created additional access to global gas markets and increased the flexibility of the European supply system. Whether and to what extent these capacities are utilized depends largely on the global availability of LNG as well as the respective market and price conditions.

In the 2025 summer half-year, according to the "ENTSOG Summer Supply Review 2025," pipeline gas accounted for around 45% of the European gas supply, with Norway remaining the largest single supplier. During this period, LNG also made a substantial contribution to Europe's supply with a share of around 38%. According to the International Energy Agency ("Gas 2025 - Analysis and Forecasts to 2030"), other key pipeline gas sources notably include Algeria and Azerbaijan.