MOSCOW, July 18. /TASS/. Europe has already accumulated 70 bln cubic meters (bcm) of gas in its underground storage (UGS) facilities, according to data from Gas Infrastructure Europe (GIE). Since the start of the summer season, the net injection of gas (the difference between injection and withdrawal volumes) into EU UGS has reached nearly 33 bcm out of the 61 bcm required to achieve 90% storage capacity by next winter.
On July 16, gas injection into EU storage facilities amounted to 337 mln cubic meters, according to GIE data. Withdrawals increased to 33 mln cubic meters. The total volume of gas in storage is currently the seventh highest ever recorded for the month of July, 70 bcm, which is down 22% compared to the same period last year.
As of now, Europe’s UGS facilities are 63.88% full, which is 8.82 percentage points lower than the five-year average for this date, and compares to 81.6% at the same point last year. Under European Commission regulations, EU member states are required to fill their gas storage to 90% by November 1 of each year. This requirement is also contributing to upward pressure on natural gas prices in the European market. According to TASS calculations, the EU must inject no less than 61 bcm of gas over the coming storage season in order to meet the mandated level of fullness. This figure is nearly 50% higher than last year’s net injection and ranks among the largest in history.
Earlier, Gazprom had predicted that Europe would face challenges in filling its storage facilities ahead of winter. This summer, European countries will require more gas to replenish reserves, and amid limited new supply capacity on the market, they will have to compete with Asia for LNG, where demand is also rising. The Gas Exporting Countries Forum had similarly projected that the EU would encounter significant difficulties in reaching 90% storage levels by winter, further predicting that summer gas exchange prices would exceed those seen in winter, undermining the economic rationale for storing gas.
This week in Europe has been noticeably warmer than the previous one. Wind power accounted for 15% of the EU’s electricity generation in June, and approximately 12% in July. The average gas procurement price in Europe was about $439 per 1,000 cubic meters in June and around $417 in July.
LNG imports
During the past heating season, Europe imported nearly 63 bcm of liquefied natural gas (LNG), marking the third-highest volume ever recorded for that period. Larger volumes of regasified gas entered the EU’s gas transmission system from LNG terminals only during the two preceding winter seasons.
LNG imports by Europe in June reached a record high for that month at 12.2 bcm, and are continuing at record levels for July. At present, regasification capacity utilization stands at 51% of maximum capacity. Since the beginning of the summer season in April, total LNG imports by EU countries have already approached 44 bcm.