MOSCOW, May 30. /TASS/. Net gas injections (the difference between volumes injected and withdrawn) into Europe’s underground gas storage (UGS) facilities since the start of the summer injection season have exceeded 14.5 bln cubic meters (bcm) of the 61 bcm required to achieve 90% storage capacity by next winter, according to data from Gas Infrastructure Europe (GIE). If the current injection pace is maintained, the European Union (EU) may reach the necessary storage level only by late autumn instead of November 1. Meanwhile, EU countries continue to import liquefied natural gas (LNG) at record levels in May.
According to GIE data, gas injections into the EU’s UGS facilities on May 28 amounted to 329 mln cubic meters, while withdrawals rose to 23 mln cubic meters. Withdrawals in May are 2% lower than the same period last year, while injections are 11% higher. Against the backdrop of high consumption rates during the last heating season, the total volume of fuel in storage as of early May ranks only seventh-highest in recorded history at 51.6 bcm of gas, marking a 32% decrease from the previous year.
Currently, Europe’s UGS facilities are filled to 47.15% capacity, which is 11.33 percentage points below the five-year average for this date and significantly lower than the 69.3% recorded a year earlier. In accordance with European Commission requirements, EU member states must ensure that their gas storage facilities are filled to 90% capacity by November 1 each year. This requirement is also contributing to upward pressure on gas prices in the European market.
TASS calculations indicate that to meet the storage target, Europe must achieve a net injection of no less than 61 bcm during the current filling season, almost 50% higher than the net injection recorded the previous year and one of the highest targets in history.
Previously, Gazprom predicted that Europe would face challenges in filling its storage facilities ahead of winter. The upcoming summer will require increased gas imports to replenish reserves, and with limited new capacity entering the market, Europe will have to compete with Asia, where demand for LNG is growing. The Gas Exporting Countries Forum anticipates that the EU will encounter significant challenges in achieving the 90% storage target by winter and forecasts that summer gas prices on the exchange will exceed those of winter, undermining the economic viability of storage injections.
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 volumes withdrawn and injected) amounted to around 69 bcm. This represents a 44% increase in total gas withdrawals from UGS by the end of the heating period compared to the previous year, while net withdrawals rose by 54%.
The current week in Europe is warmer than the previous one. Wind generation accounted for an average of 14% of the EU’s electricity output in April and 15% in May. The average gas procurement price in Europe was around $409 per 1,000 cubic meters in April and about $411 in May.
LNG imports
During the last heating season, Europe imported nearly 63 bcm of LNG, marking the third-highest volume recorded for this period. Only the two preceding winter seasons saw higher volumes of regasified gas entering the EU’s gas transmission system from LNG terminals.
In April, Europe’s LNG imports reached an all-time high of 12.8 bcm. Currently, regasification capacities are operating at 57% of their maximum capacity. LNG imports in the current month are 37% higher than the corresponding month last year and continue to follow a record-setting trajectory.