European natural gas prices dropped sharply on Tuesday, with early trading showing a decline of nearly 6% to €27.30 per megawatt-hour, reflecting abundant global supplies. This comes after gas futures on the Dutch TTF hub fell almost 45% throughout 2025, marking a significant easing in the market.

The International Energy Agency (IEA) attributes the trend to record imports of liquefied natural gas (LNG) by Europe, which have helped alleviate concerns over relatively low storage levels. As of now, EU gas storage stands at roughly 60.6% of capacity, down from 70.8% at the same point last year. In 2025, Europe received 142 billion cubic meters of LNG, an increase of 28% compared with the previous year.

Steady LNG deliveries from the United States and other suppliers have given European buyers more flexibility than in prior years. Combined with mild weather at the start of the heating season and consistent pipeline supplies from Norway, these factors have exerted downward pressure on prices.

The European gas market has undergone a structural transformation since the energy crisis triggered by Russia’s invasion of Ukraine. LNG now accounts for around 45% of EU gas imports, up from roughly 20% before the conflict, highlighting the continent’s shift toward diversified supply sources.

Looking ahead, a series of new LNG export projects worldwide is expected to expand the available supply even further. Analysts suggest that this could create an extended period of surplus in the European gas market, keeping prices relatively subdued over the coming months.