Patrick Pouyanné, CEO of Total, at a press conference on Monday (November 1), while reviewing the energy demand outlook, stated that Europe will have to bear higher costs to secure enough energy for the upcoming winter. He emphasized that the countries of the green continent need to revise their storage policies.
Challenges of Gas Storage in Europe
Pouyanné stated: "Europe's mistake in 2026, especially regarding gas, was that it adjusted storage requirements a year earlier than necessary. This action resulted in entering winter with less storage, consequently putting more pressure on us."
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The war between the United States and the Zionist regime against Iran and its impact on liquefied natural gas (LNG) exports from Qatar, one of the world's largest LNG suppliers, has led to intense competition between Europe and Asia for purchasing gas shipments and filling storage tanks before the winter season.
Increase in Gas Prices and Its Impacts
This competition has caused an increase in gas prices throughout the summer season. Typically, during this season, traders store the necessary fuel to meet winter demand in storage tanks. The Agency for the Cooperation of Energy Regulators (ACER) announced in April that, given the global supply shortage, filling storage to 90% will be challenging, and countries may consider an 80% storage level.
Data from the "European Gas Infrastructure Association" shows that Germany's gas storage facilities, which are the largest in Europe, are at their lowest level ahead of the winter season. The storage level in this country on November 1 was 61.03%, significantly lower than the EU average of 74.62%.
Pouyanné also referred to short-term assessments and monitoring economic efficiency, stating: "We thought analysts' predictions would indicate a quicker rise in gas prices, but instead, market performance seemed as if the war against Iran would end in the summer." The benchmark natural gas price in European markets exceeded 100 euros for the first time since the energy crisis of 2022 on October 28.
The CEO of Total concluded: "We are paying more than other consumers."
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