MOSCOW, July 10. /TASS/. Net gas injection (the difference between the volumes injected and withdrawn) into Europe’s underground gas storage (UGS) facilities since the start of the summer season has exceeded 30 bln cubic meters out of the 61 bln cubic meters required to reach the 90% target by next winter, according to data from Gas Infrastructure Europe (GIE). At the same time, liquefied natural gas (LNG) imports since the start of the summer season in April have already surpassed 40 bln cubic meters.
According to GIE, on July 8, gas injections into the European Union’s UGS facilities totaled 360 mln cubic meters, while withdrawals decreased to 18 mln cubic meters. The total amount of gas in storage ranks only as the seventh-highest July level on record, standing at 67.2 bln cubic meters, which is 23% lower year-on-year.
Currently, Europe’s UGS facilities are 61.23% full, which is 9.32 percentage points below the five-year average for this date and far short of the 79.6% recorded a year earlier. Under European Commission requirements, EU member states must fill their gas storage facilities to at least 90% by November 1 each year. This mandate is additionally driving up gas prices on the European market. According to TASS calculations, Europe’s net gas injection for the remainder of the storage season must reach at least 61 bln cubic meters to meet the storage target. This figure is nearly 50% higher than the net injection volume recorded last year and represents one of the largest seasonal storage requirements in history.
Earlier, Gazprom warned of difficulties for Europe in reaching its storage targets ahead of winter. Over the coming summer months, regional countries will need significantly larger volumes of gas to replenish their reserves. With limited new capacity coming online, Europe will face competition for LNG supplies from Asia, where demand for gas continues to rise. The Gas Exporting Countries Forum had also predicted that the EU would encounter considerable challenges in filling its storage facilities to 90% before winter, forecasting that summer gas prices on exchanges would exceed winter rates, undermining the economic viability of storage injections.
This week in Europe is noticeably cooler than the previous one. Wind power accounted for an average of 15% of EU electricity generation in June and around 13% so far in July. The average purchase price for gas in Europe in June was approximately $439 per 1,000 cubic meters, dropping to around $412 in July.
During the past heating season, Europe imported nearly 63 bln cubic meters of LNG, marking the third-highest figure for this period on record. Only the two preceding winters saw higher volumes of regasified gas flowing from LNG terminals into the EU’s gas transmission system.
LNG imports by Europe in June reached a record high for that month at 12.2 bln cubic meters, and July imports continue at record-breaking levels for this month. Currently, regasification capacity is operating at 51% of its maximum potential. Total LNG imports by EU countries during the current summer period, starting in April, have already exceeded 40 bln cubic meters.