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Maguire: Low snow cover in Europe leads to higher gas consumption.

Europe's appetite to natural gas may grow more than expected in this year after skimpy coverage of snow across key mountainous areas ate away at hydropower production.

The amount of snow in Italy and Austria has been well below average so far in 2026. This has led to a sharp drop in the fuel source for hydropower plants.

Local?utilities use natural gas plants primarily to offset the declines in?hydro?dams. These are the largest power sources in Austria and Italy, respectively.

According to LSEG, the gas-fired electricity output in Italy is up 24% and in Austria by 17% compared to where it was at this time in 2025.

Power firms are likely to maintain the current level of gas production if snow accumulation continues below historical averages. This will further reduce regional gas stocks, which have already been at a multi-year low.

The prospect of increased gas demand in Europe is a boon for major LNG exporters such as the U.S. The upbeat outlook for gas could be ruined by heavy snow and rain in the region over the next few weeks.

EAST-WEST ?DIVIDE

Recent maps of Europe's snow cover - or the lack thereof – highlight the severity of the shortage in certain areas.

Most of Western and Southern Europe, including the areas hosting the Winter Olympics, does not have enough snow.

Ski resorts are able to create artificial snow for the Olympics.

Utility companies looking to manage power flows will have to rely on real snow to act as a storage reservoir during winter, and then to channel the runoff to rivers?and?dams to produce electricity when the snow melts.

LSEG data show that Italy's hydro power production from run-of river dams is down 22% compared to a year ago and the lowest year-to date since at least 2023.

LSEG also has a sluggish forecast for the future of hydro production. The estimated output is projected to be 13% lower than its long-term average through April.

Austria's projected shortfall will be even greater, with a production that is expected to fall by around 40% below its long-term average through April.

The forecasts for the larger Danube catchment region - which spans southern Germany, Hungary, and Romania – are in line with long-term averages despite the subpar readings this year.

GAS CRUTCH

Austrian and Italian utilities are used to patchy hydro-generation and rely on gas plants for any shortfalls.

Utility companies in Turkey increasingly follow similar generation trends. Periods of high gas-fired output coincide with bouts of low hydro dam production.

With regional natural gas inventories at multi-year lows across Europe, power companies may begin to see costs of gas replacement rise as storage farms and utility networks manage system throughput.

Prices for regional benchmark natural gas are well above what they were in 2025. The average price per megawatt-hour (MWh) in 2026 is around 34 euros, compared to around 27 euros/MWh last December.

If there is a disruption in the LNG export flow from the U.S., or any other supplier, we could see further price increases.

Gas inflation can cause utilities to lose money and increase energy bills.

If?snow accumulates in key hydro markets are scarce, power companies may have no choice but to pay for the gas that they need to keep the lights on during winter and spring.

These are the opinions of the columnist, an author for.

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(source: Reuters)