Business · Energy & Commodities · 1 hr ago
Europe’s gas squeeze creates an opening for domestic producers
Europe’s low gas storage and tighter supply are increasing concern about energy security, especially if winter is cold.
The region is relying more on imported liquefied natural gas, while Russian pipeline gas is being phased out and other supplies face limits.
ADX Energy, which already produces gas in Austria, says it plans to increase its Austrian production to meet demand.
The company aims to reach about 750 barrels of oil equivalent per day within 18 months, and testing is underway at its HOCH-1 discovery.
ADX also plans to test a deeper formation and drill the GOLD-1 well, while exploring its Sicily Channel permit.
The company says the permit includes the NILDE oil field, which is believed to hold 25 million to 30 million barrels of oil.
Europe’s gas supply squeeze is creating an opening for companies that produce gas locally.
Gas storage levels are below historical levels, while the region’s energy transition has been slower than expected.
Wood Mackenzie estimates the European Union could need LNG for more than 98% of its gas needs by 2050 if no new field investments are made.
ADX Energy plans to increase production in Austria and explore its Sicily Channel permit.
Testing at ADX’s HOCH-1 discovery produced a flow of 3.15 million cubic feet of gas per day.
- Who
- ADX Energy and other local gas producers stand to benefit from Europe’s gas supply squeeze.
- What
- Europe’s need for gas and LNG is creating opportunities for domestic producers. ADX plans to raise Austrian production and explore offshore Sicily.
- When
- The article was published on 15 October 2026. ADX plans to test a deeper Hall Channel formation in December 2026.
- Where
- Europe, including ADX’s gas operations in Austria and its exploration acreage in the Sicily Channel.
- Why
- Gas storage is below historical levels and the transition to renewable energy has been slower than expected, increasing the need to secure gas supplies.
This story does not have two clearly opposing sides.
Wood Mackenzie estimated that the European Union could need LNG for over 98% of its gas needs by 2050 if no new field investments are made.
Stockhead published its report on Europe’s gas squeeze and the opportunities for local producers.
Testing at ADX’s HOCH-1 discovery is underway, and a test combining four intersected zones flowed 3.15 million cubic feet of gas per day.
ADX plans to test at least one deeper Hall Channel formation.
ADX plans to increase net gas production to about 750boe/d through its shallow gas program.
- European Union LNG needs by 2050
- Over 98% of gas needs if no new field investments are made
- Current European Union LNG share
- 85% of gas needs
- Russian gas phase-out
- By the end of 2027; Russian gas represents 12% of imports
- HOCH-1 test flow
- 3.15 million cubic feet of gas per day
- ADX planned net gas production
- About 750boe/d within the next 18 months
- GOLD-1 mean prospective resource
- 8.3 billion cubic feet of gas
What people are saying
The current situation is also exacerbated by the phase-out of Russian gas, which represents 12% of imports, by the end of 2027.
From an environmental perspective US LNG is undesirable given it comes from fracking, needs to be liquefied, transported and regassified, making it dirty gas compared to what we can produce in Austria and soon offshore Sicily.
We are prioritising near-term and medium-term gas exploration due to the long-term outlook for gas.