MOSCOW, August 29. /TASS/. Natural gas reserves in Europe’s underground storage facilities (UGS) have surpassed 76.5%, according to data from Gas Infrastructure Europe (GIE). Net injections of gas (the difference between injection and withdrawal) into UGS have exceeded 47 bcm out of the 61 bcm (bln cubic meters) required to reach 90% capacity by winter.
On August 27, gas injection into EU UGS amounted to 228 mcm, while withdrawals rose to 21 mcm, GIE reported. The total volume of gas in storage reached 84.2 bcm, making it only the eighth-highest level ever recorded for August, and 17% below the previous year.
Currently, European UGS facilities are filled to 76.64% capacity - 7.58 percentage points lower than the five-year average for this date - compared with 92% a year earlier. Under new European Commission requirements, EU member states must ensure storage levels of at least 90% between October 1 and November 1 each year. A 10% flexibility margin is permitted in the event of difficult storage conditions. At the same time, these requirements are fueling upward pressure on natural gas prices in the European market. According to TASS calculations, Europe’s net gas injections during the storage-filling season must total no less than 61 bcm to meet the mandated level. This figure is nearly 50% higher than last year’s net injections and ranks among the highest ever recorded.
Earlier, Gazprom forecast difficulties for Europe in reaching its storage targets ahead of winter. This summer, European countries require more gas to replenish reserves, and with limited new capacity entering the market, they are forced to compete with Asia, where demand is growing, for LNG supplies. The Gas Exporting Countries Forum had warned that the EU would face significant challenges in filling storage to 90% ahead of winter, predicting that summer spot gas prices would surpass those of the winter season, thereby undermining the economic rationale for storage injections.
The share of wind power in the EU’s electricity generation averaged 12% in July and about 14% in August. The average gas purchase price in Europe stood at around $410 per 1,000 cubic meters in July, dropping slightly to about $395 in August.
During the last heating season, Europe imported nearly 63 bcm of LNG, marking the third-highest volume ever for this period. Only the two preceding winters saw larger inflows of regasified gas into the EU’s transmission system from LNG terminals.
In June, Europe imported 12.2 bcm of LNG, setting a record for that month, though July saw a slowdown in import momentum. Currently, regasification capacity utilization stands at 41% of maximum capacity.