European Gas Prices Surge as Norway’s Troll Field Supply Cuts Tighten Market

May 26, 2025, Amsterdam — European natural gas prices climbed on Monday, driven by unplanned capacity reductions at Norway’s Troll field, a critical supplier to the region, exacerbating concerns over fuel availability. The benchmark Dutch front-month futures rose 1.2% to €36.90 per megawatt-hour, extending a four-week rally as Europe grapples with depleted storage levels and heightened competition for global gas supplies.

The disruptions, coupled with ongoing maintenance at other Norwegian facilities, underscore the region’s vulnerability to supply shocks, particularly as it seeks to rebuild reserves ahead of winter. As Norway remains Europe’s top gas supplier post-Russia’s pipeline cuts, the market braces for further volatility amid rising global demand.

Troll Field Outages Drive Price Spike

The Troll field, located in the North Sea near Bergen, Norway, and responsible for roughly 11% of the EU’s natural gas demand, faced unexpected outages due to external power supply issues starting last week. These disruptions have curtailed gas flows, pushing prices higher. Real-time data indicates that approximately 27% of Troll’s available capacity remains unavailable, down slightly from 30% earlier on Monday, though the duration of the outage remains uncertain.

Additional planned maintenance at Norway’s Nyhamna processing plant and Aasta Hansteen field has further strained supplies, amplifying market concerns. Social media posts reflect growing trader unease, with some noting that Europe’s energy market is far from stabilized despite earlier optimism about diversified supplies.

Did You Know?
Norway’s Troll field, operational since 1996, is the largest natural gas field in the North Sea, supplying gas to millions of European households and industries via pipelines to Belgium, France, Germany, the UK, and Poland.

Europe’s Storage Challenges Amid Global Competition

Europe faces mounting pressure to refill its gas storage sites, which were significantly depleted after last winter. The region’s reliance on Norway intensified following Russia’s invasion of Ukraine in 2022, which slashed Russian pipeline deliveries. Current storage levels are at 62% capacity, below the five-year average for this time of year, according to Gas Infrastructure Europe. The combination of Norway’s supply disruptions and rising global demand—particularly from Asia, where LNG spot prices are climbing—complicates Europe’s efforts to secure sufficient gas.

Recent reports highlight Egypt’s push to procure 40-60 LNG cargoes to meet summer demand, signaling fiercer competition. This dynamic has driven volatile price movements, with Monday’s 2.2% intraday surge erasing over half of April’s price declines.

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Outlook: Volatility Looms as Winter Approaches

The European gas market is poised for continued turbulence as maintenance schedules and unplanned outages test supply resilience. Norway’s Troll field, which produced a record 42.5 billion cubic meters in 2024, remains a linchpin for Europe’s energy security, but its recent issues highlight the fragility of supply chains. Analysts warn that prices could rise further if outages persist or if colder weather spikes demand.

Europe’s shift toward LNG imports and renewable energy, part of the REPowerEU initiative, has yet to fully offset the loss of Russian gas, leaving the region exposed to global market fluctuations. With traders awaiting updates on Troll’s recovery and upcoming economic data, the market remains on edge.