MOSCOW, August 1. /TASS/. The average price of gas in Europe fell by 7% in July month-on-month to around $410 per 1,000 cubic meters, though in annual terms it rose by almost 12%, according to futures data from the London ICE exchange and TASS calculations.
The gas price at European hubs moved to growth last fall, having reached $464 per 1,000 cubic meters in 1H 2025. Overall prices this summer are 13% higher compared with the same period last year amid higher demand for gas to fill storage facilities for the winter.
On June 30, gas futures were trading at about $401 per 1,000 cubic meters, whereas on July 31, trading closed at $415, which is 3.5% higher than at the end of last month.
The average gas price in Europe equaled about $416 per 1,000 cubic meters in September 2024 (down 0.3% year-on-year), $456 in October (down 11%), $491 in November (down 4%), $489 in December (up 20%), $517 in January 2025 (up 53%), $542 in February (up 88%), $467 in March (up 55%), $409 in April (up 28%), $412 in May (up 15%), $439 in June (up 15%), and $410 in July (up 12%).
The price of gas is higher than it was last year due to increased demand for fuel in Europe. This summer the countries in the region will need more gas to fill storage facilities, and amid limited commissioning of new capacities on the market, they will have to compete for LNG with Asia whose demand for fuel is growing. The Gas Exporting Countries Forum (GECF) expected summer exchange prices for gas to be higher than they were in winter, which undermines the economic feasibility of pumping gas into underground gas storage facilities. Against this background, Europe's LNG imports are set to break a record this year.
The rate of gas injection into underground storage facilities (UGS) in Europe slowed in July compared to the previous month, though it remains at a three-year high. With the current rate of gas injection maintained, the EU could fill its storage facilities to 90% by the end of September. That said, according to new requirements of the European Commission, EU countries must ensure that their storage facilities are filled with gas by 90% from October 1 to November 1 of each year. In addition, 10% flexibility is allowed in the event of difficult UGS filling conditions.
Earlier, TASS calculations showed that Europe’s net gas injection in the upcoming UGS filling season should reach at least 61 bln cubic meters to meet the 90% filling target. This is almost 50% higher than net injection in the previous year, representing one of the highest figures in history. The European Network of Transmission System Operators for Gas (ENTSOG) has said that in order to fill storage facilities by 90% required by the European Commission, European countries will have to pump approximately 57 bln cubic meters of gas into UGS facilities. The GECF estimated this figure at 60 bln cubic meters.