The combination of high prices and relatively low storage levels has fueled concerns among some politicians and market participants about gas supplies and affordability this winter.

FRANKFURT, Sept. 16 (Xinhua) -- European natural gas prices have hovered near multi-year highs as the heating season approaches, raising concerns in Germany over energy costs and low gas storage levels.

Dutch TTF front-month futures, the benchmark for European gas, were trading at around 80 euros (92 U.S. dollars) per megawatt-hour (MWh) on Wednesday, slightly down from around 83 euros (95.5 dollars) on Monday, the highest level since December 2022.

Natural gas prices in the European Union (EU) have more than doubled since the outbreak of the Iran war. The surge has coincided with hikes in oil and other energy prices amid heightened geopolitical tensions.

Meanwhile, Germany's natural gas storage inventory was around 56 percent full, the lowest level ever registered for September since the tracking started in 2011, according to data from Gas Infrastructure Europe (GIE).

Germany's more than 40 gas storage facilities remain barely over half full as the ongoing closure of the Strait of Hormuz adds pressure to an energy system that has undergone major changes since the Russia-Ukraine conflict erupted in 2022 and Germany moved to reduce its reliance on Russian energy supplies.

Traditionally, operators could fill natural gas storage facilities during the summer when demand and prices are relatively low and sell it during the higher-demand winter months. However, the sharp rise in gas prices has weakened the economic incentive to replenish storage facilities.

The Iran war and resulting disruption to traffic through the Strait of Hormuz, a crucial waterway for international oil and natural gas shipments, have driven gas prices sharply higher, making summer storage less attractive to market participants.

"At the same time, the situation of German storage facilities is worsening due to the turbulence on the energy markets," FNB Gas, an association of gas transmission operators in Germany, said in a report

The combination of high prices and relatively low storage levels has fueled concerns among some politicians and market participants about gas supplies and affordability this winter.

During a Bundestag debate last week, Alice Weidel, co-leader of the Alternative for Germany (AfD) party, cited the low storage levels and argued that replenishing gas inventories must be a top priority. She warned that a cold winter could force Germany to make costly emergency gas purchases or resort to rationing, dealing a heavy blow to businesses and households.

As the Iran war drags on and tensions in the Red Sea flare up, experts have warned that EU natural gas prices could rise further to 100 or even 120 euros (115.1 to 138.1 dollars) per MWh if supply disruptions worsen.