France on Track to Hit 85% Gas Storage Target by Late October

France is expected to reach its state-mandated gas storage target of 85% capacity by the end of October, according to the president of the gas industry lobby France Gaz. Frederic Martin told journalists on Tuesday that French storage sites are currently 75% full and are on track to meet the regulated goal, which should help the country avoid supply shortages during the upcoming winter.

This outlook stands in contrast to Germany, where the gas industry association INES has warned that storage could reach only 77% capacity by the November 1 target date. Such a level would not guarantee reliable supply in the event of an extremely cold winter.

Across Europe, gas storage facilities are currently filled to 66.9% of capacity, according to the latest data from Gas Infrastructure Europe.

Martin cautioned that consumers should brace for a difficult period ahead. "We are facing another six months of what I expect to be high prices," he said. Unlike the 2022 gas crisis, however, he noted that Europe now benefits from diversified suppliers and strong flows through EU transmission pipelines.

Demand is expected to decline as both gas and wholesale electricity prices rise this winter. European gas prices have already climbed sharply since the outbreak of the war between the US and Iran, which has nearly shut the Strait of Hormuz, a vital route for global gas and oil shipments.

Looking further ahead, Martin pointed to a potential easing of pressure. "We will see greater LNG liquidity by late 2027, and even more in 2028. So, we are on a trajectory toward lower prices, unless global demand surges," he said.

In the nearer term, the industry is also navigating regulatory changes. Martin noted that contract terminations have increased in recent months as European suppliers work to comply with regulations banning Russian gas deliveries starting in January. Suppliers who purchase gas on the open market are liquidating their existing contracts and will shift to alternative sources.