European Gas Prices Plunge to Lowest Level in Over a Year
Oslo, Norway – September 25, 2025 – Natural gas prices in Europe have experienced a meaningful decline, falling to their lowest point in over sixteen months, offering relief to consumers and industries bracing for winter. The benchmark Dutch front-month gas contract settled at €31.35 per megawatt-hour today, a decrease of over 70% from peaks seen in August 2022 following Russia’s invasion of Ukraine. This dramatic price drop is attributed to robust storage levels, reduced demand, and increased supply from option sources like Norway and liquefied natural gas (LNG).
The falling prices represent a major shift from the energy crisis that gripped europe last year, when soaring gas costs fueled inflation and raised fears of widespread energy shortages. While concerns about energy security remain, the current situation provides a buffer against potential disruptions and eases the financial burden on households and businesses.The price decrease impacts energy bills for millions of European citizens and lowers production costs for energy-intensive industries, potentially stimulating economic growth.Further declines are anticipated as storage facilities continue to fill and weather forecasts predict a milder-than-average winter.
Norway, now a key supplier to Europe, has significantly increased its gas exports. According to data from Gas Infrastructure Europe, european gas storage is currently 95% full, exceeding the five-year average. Increased LNG imports from the United States, Qatar, and other nations have also contributed to the supply surplus.
The European Commission has been actively working to diversify energy sources and reduce reliance on Russian gas since the start of the conflict in Ukraine. These efforts, combined with energy conservation measures and a shift towards renewable energy sources, have played a crucial role in stabilizing the market.
