Equinor has warned that Europe is unlikely to meet its target of filling gas storage facilities to 80% ahead of next winter, citing weak market incentives and constrained supply.
Speaking on Wednesday, Chief Financial Officer Torgrim Reitan said storage levels are currently about 30% full around six percentage points below the seasonal average raising concerns over preparedness.
He explained that current market pricing structures, where near-term gas contracts are more expensive than those for future delivery, discourage companies from injecting gas into storage.
This lack of incentive, combined with tighter supply conditions, means Europe could remain exposed to disruptions from extreme weather or operational setbacks in the coming months.
Adding to the pressure, ongoing conflict in the Middle East has damaged liquefied natural gas output in Qatar, cutting export capacity by roughly 17%.
Reitan noted that repairs to affected LNG infrastructure could take up to five years, significantly delaying expected supply recovery.
He added that earlier expectations of a global LNG surplus this decade have now faded, forcing Europe to rely more heavily on imports to meet demand.
While oil markets may stabilise relatively quickly if key shipping routes reopen, gas markets are expected to take much longer to rebalance due to infrastructure constraints.
The comments came as Equinor reported stronger first-quarter earnings, supported by increased production and higher oil and gas prices following geopolitical tensions.
Analysts say the combination of supply disruptions and unfavourable pricing dynamics could leave Europe’s energy market vulnerable heading into winter.