European natural gas prices were at the €28 per MWh mark in early January, remaining relatively close to the 20-month low of €26.8 tested through mid-December as ample supply levels lowered asking prices in Europe’s main gas hubs.
Record-high gas output in the US throughout last year and the culmination of fresh supply contracts with Middle Eastern producers resulted in a 28% increase in LNG imports to Europe annually in 2025.
The higher sourcing from LNG combined with steady supply from Norwegian pipelines, extending higher quantity of the alternative purchases into Europe since efforts to move away from Russian energy in 2022.
On the demand front, forecasts indicated that lower winter temperatures should moderate later in January, limiting gas-intensive heating generation.
Still, stocks remained firmly below their five-year average at under 60%.