EU calls gas supply group meeting in response to Iran conflict
The European Union’s gas supply coordination group will meet on Wednesday to discuss the impact of the expanding conflict in the Middle East, a European Commission spokesperson told Reuters after European gas prices leapt by more than 50%.
The gas coordination group includes representatives from EU governments, monitors gas storage and security of supply, and coordinates response measures during crises.
The EU’s oil coordination group will also meet within 48 hours. Earlier on Monday, a spokesperson said the Commission expects no immediate EU oil supply impact from the escalation of the U.S.-Israeli air war on Iran, but has asked governments to share their assessments of the security of oil supplies by the end of the day.
STRAIT OF HORMUZ DISRUPTION DRIVES GAS PRICE SURGE
After the conflict led to the disruption of energy shipments through the Strait of Hormuz, the benchmark European gas price, the front-month contract at the Dutch TTF gas hub increased on Monday by more than 50% by 1341 GMT at 48.66 euros/MWh, on the Intercontinental Exchange.
The Strait of Hormuz is a conduit for more than 20% of global oil and around 20% of the world’s liquefied natural gas.
Europe has increased imports of LNG as it seeks to phase out Russian gas following Russia’s 2022 full-scale invasion of Ukraine.
The U.S. supplied 58% of EU LNG last year. The bloc also sources smaller amounts from countries in the Middle East.
The EU imported 6% of its LNG from Qatar in the third quarter of 2025, the latest EU data show. Qatar halted LNG production on Monday as the conflict prompted precautionary shutdowns of oil and gas facilities across the region.
Europe is emerging from its winter heating season, when gas demand typically peaks. At 30% full, EU gas storage sites are 9% below filling levels this time last year, data from Gas Infrastructure Europe showed.
The European Commission said on Monday that EU gas storage levels are adequate to ensure storage can be replenished ahead of next winter.
(REUTERS)
