Luxembourg’s gas storage facilities are almost full

The process of filling European gas storage facilities is proceeding at a steady pace. In response to a parliamentary question from MEP Georges Engel, Luxembourg’s Minister for the Economy, Lex Delles, stated that the European Union’s target of filling storage facilities to 80 per cent capacity is gradually being met. According to Euronews, this figure currently stands at 64.7 per cent. At the same time, the situation in Luxembourg has its own particularities. Due to geological constraints, the country does not have its own underground gas storage facilities, so the government is meeting its energy commitments by utilising infrastructure outside the country.

Under the established regulations, Luxembourg is required to build up a reserve equivalent to 15 per cent of the average national consumption over the past five years by 1 November 2026. At present, based on information from suppliers, the country has already secured 90 per cent of this required volume. Nevertheless, Lex Delles acknowledged that there is significant strain on global energy markets. In particular, the benchmark gas price in Europe exceeded €70 per megawatt-hour on Monday, the highest level since January 2023. Such trends are forcing some market participants to postpone purchases.

The complex geopolitical situation, including the conflict in the Middle East, continues to keep prices high. However, the current situation is not comparable to the extreme market volatility seen four years ago. A key factor in stabilisation and adaptation has been a structural decline in demand: thanks to energy-saving recommendations aimed at households and businesses, gas consumption has fallen by 16 per cent across the EU and by 20 per cent in Luxembourg itself since 2021.