MOSCOW, May 26. /TASS/. The volume of gas in Europe’s underground storage (UGS) facilities has exceeded 50 bln cubic meters (bcm), although it remains 24.4 bcm below the level recorded a year earlier, according to data from Gas Infrastructure Europe (GIE). If the current injection rates persist, the EU may only reach the required 90% storage capacity target by late autumn instead of the November 1 deadline. Meanwhile, liquefied natural gas (LNG) imports by EU countries in May continue at record levels.
On May 24, gas injection into EU UGS totaled 339 mcm, according to GIE data. Withdrawals fell to 31 mcm. Withdrawals in May were 3% lower year-on-year, while injections were up 11%. Given the high withdrawal rates during the past heating season, the total volume of gas in UGS ranks as only the seventh highest for early May in the entire history of observations at 50.3 bcm (-33% compared to the previous year).
Currently, Europe’s UGS facilities are filled to 45.94% capacity (11.27 percentage points lower than the five-year average for this date), compared to 68.2% a year earlier. According to European Commission regulations, EU countries must ensure their storage facilities are filled to 90% by November 1 each year. However, this requirement is also contributing to upward pressure on gas prices in the European market. TASS calculations show that Europe must achieve net gas injections of at least 61 bcm during the upcoming UGS filling season to meet the storage target. This figure is nearly 50% higher than net injections a year earlier and represents one of the highest levels in history.
Previously, Gazprom had predicted that Europe would face challenges in filling its storage facilities before winter. During the upcoming summer, the region will need increased gas volumes to replenish stocks, and amid limited new capacity coming online, it will have to compete for LNG with Asia, where demand for fuel is rising. The Gas Exporting Countries Forum (GECF) expects the EU to encounter significant difficulties in reaching the 90% UGS target by winter and forecasts that summer spot gas prices will exceed winter levels, undermining the economic rationale for injecting gas into storage.
Heating season and gas prices
The heating season in Europe concluded on March 28, lasting 151 days. During this period, EU countries withdrew over 74 bcm of gas from storage. Net withdrawals (the difference between withdrawals and injections) amounted to around 69 bcm. Thus, total withdrawals from UGS at the end of the heating season were 44% higher than a year earlier, with net withdrawals up 54%.
The upcoming week in Europe is expected to be warmer than the previous one. Wind power accounted for an average of 14% of EU electricity generation in April and 15% in May. The average price of gas purchases in Europe in April this year was approximately $409 per 1,000 cubic meters, while in May it was around $408.
LNG imports
During the past heating season, Europe imported nearly 63 bcm of LNG, marking the third-highest volume for this period on record. Only the two preceding winter seasons saw larger volumes of regasified gas enter the EU gas transmission system from LNG terminals.
In April, Europe’s LNG imports reached an all-time high at 12.8 bcm. Currently, regasification capacity utilization stands at 54% of maximum capacity. LNG imports this month are 35% higher than during the same month last year and are once again tracking record levels.