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Daily gas withdrawal from UGS in Europe surpasses 500 mcm first this heating season

The gas purchase price averaged $456 per 1,000 cubic meters in Europe in October and it has been around $467 in November

MOSCOW, November 15. /TASS/. Daily withdrawal of gas from European underground gas storage (UGS) facilities has risen seriously amid a cold spell, surpassing 500 mln cubic meters (mcm) for the first time this heating season, which is almost 50 times higher than pumping, according to data provided by Gas Infrastructure Europe (GIE). The gas price on the exchange in Europe has exceeded $500 per 1,000 cubic meters first since November 2023. Meanwhile Gazprom supplies gas for Europe through Ukraine in the volume of 42.4 mcm per day to the Sudzha gas pumping station in Russia’s Kursk Region.

Gas pumping into UGS facilities in EU countries amounted to 11 mln cubic meters on November 13, according to data provided by Gas Infrastructure Europe (GIE). Meanwhile withdrawal equaled 547 mcm. European UGS facilities are currently 92.1% full (0.16 percentage points higher than the average as of this date in the past five years), with 102.2 bln cubic meters of gas stored in them.

"Gazprom supplies Russian gas for transit through Ukrainian territory in the volume confirmed by the Ukrainian side via the Sudzha gas pumping station of 42.4 mln cubic meters as of November 15. The request for the Sokhranovka gas pumping station has been rejected," a Gazprom representative told reporters. On the previous day, the pumping also equaled 42.4 mln cubic meters.

The gas purchase price averaged $456 per 1,000 cubic meters in Europe in October and it has been around $467 in November. On Thursday, the price of gas on the European exchange exceeded $500 per 1,000 cubic meters for the first time since November 2023, as Austria’s OMV said that it had received an arbitral award under the rules of the International Chamber of Commerce (ICC) on a dispute with Gazprom Export, and that it would to recover awarded damages amounting to 230 mln euro for failure to supply the contracted volume of gas to Germany from the Russian company on account of payments under the agreement on supplies to Austria. Due to this OMV expects a deterioration of the contractual relationship under the Austrian supply contract with Gazprom Export, including a potential halt of gas supply.

Total LNG supplies from terminals to Europe’s gas transport system in August hit the lowest level since October 2021, though they returned to growth in the fall, reaching 8.8 bln cubic meters in October, 11% higher than in September. That said, the level was the lowest for this month since 2021. Facilities for regasification of liquefied gas and its further pumping into Europe’s pipelines are loaded by 45% of their capacity now.