MOSCOW, July 21. /TASS/. Europe continues to import record volumes of liquefied natural gas (LNG), with deliveries to the region since the end of the heating season in early April already nearing 45 bln cubic meters (bcm), according to data from Gas Infrastructure Europe (GIE). At the same time, net gas injection (the difference between volumes injected and withdrawn) into EU underground storage facilities since the start of the summer season has approached 34 bcm out of the 61 bcm required to reach the 90% storage fill target ahead of next winter.
According to GIE, on July 19 gas injection into EU underground storage facilities amounted to 408 mln cubic meters (mcm), while withdrawals rose to 18 mcm. The total gas volume in storage currently ranks only as the seventh highest for July in the entire observation history, standing at 71 bcm, down 21% compared to the previous year.
As of now, European gas storage facilities are 64.73% full, which is 8.68 percentage points below the five-year average for this date and significantly lower than the 82.3% level recorded a year earlier. Under European Commission requirements, EU member states must ensure that their gas storage facilities are 90% full by November 1 each year. This requirement is also contributing to upward pressure on gas prices in the European market. According to TASS calculations, Europe must inject a net volume of at least 61 bcm this season to meet the mandated storage level. This figure is nearly 50% higher than the net injection recorded a year ago and represents one of the highest levels in history.
Earlier, Gazprom warned that Europe would face difficulties in filling its storage facilities ahead of winter. This summer, countries in the region will require significantly more gas to replenish their reserves and will need to compete with Asia for LNG amid limited additions of new capacity to the market. The Gas Exporting Countries Forum previously forecast that the EU would encounter serious challenges in achieving the 90% storage fill level by winter and expected that summer spot gas prices would exceed those seen during the winter, thereby undermining the economic viability of injecting gas into storage.
The current week in Europe is expected to be slightly cooler than the previous one. Wind generation accounted for an average of 15% of the EU’s electricity output in June, and about 11% in July. The average gas procurement price in Europe stood at around $439 per thousand cubic meters in June of this year, and approximately $415 in July.
LNG Imports
During the past heating season, Europe imported nearly 63 bcm of LNG, marking the third highest volume for this period on record. Higher volumes of regasified gas entered the EU’s gas transmission system from LNG terminals only during the two previous winter seasons.
In June, Europe’s LNG imports reached a record high for that month at 12.2 bcm, and the current month continues to see record-breaking import levels for July. At present, regasification capacity is operating at 42% of its maximum. Since the beginning of the summer period in April, total LNG imports by EU countries have already approached 45 bcm.