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In a gas and LNG market update sent to Rigzone on November 15, Rystad Energy Senior Analyst Wei Xiong noted that European underground storage started to see net withdrawal from November 7.
“As it enters heating season, Europe saw withdrawals at 49.55 million cubic meters per day (MMcmd), which is higher than injection, which stood at 30 MMcmd on November 7,” Xiong said in the update.
“As such, the region’s storage levels have marginally dropped from 99.7 percent full on November 7 to 99.5 percent full as of November 11,” Xiong added.
In the update, Xiong stated that, throughout the year, Europe has continued to achieve its injection goal ahead of schedule. The Rystad analyst highlighted that this was a “key factor helping the region through the gas supply crisis last year”.
“The ample inventories at present will continue to protect Europe from supply disruptions which still occurred this year,” Xiong highlighted in the update.
“On the weather side, temperatures in the coming week in northwest Europe are forecast to stay 1-5 degrees higher than normal levels, further relieving pressure on winter supplies,” Xiong added.
“Temperatures are likely to fall below normal from late November, and the temperature trend needs to be monitored as it is the most crucial factor affecting winter gas demand,” Xiong continued.
As of November 6, European storage was 99.6 percent full at approximately 114 billion cubic meters, according to a summary table included in a previous Rystad gas and LNG market update sent to Rigzone on November 8.
“Underground storage facilities in Europe were 99.6 percent full and climbing as of November 6, with the December Title Transfer Facility (TTF) price down 14 percent week on week to approximately $14.4 per MMBtu on November 7,” Rystad Energy Senior Analyst Masanori Odaka said in the market update sent to Rigzone on November 8.
“While the first week of November in 2020 and 2021 saw more withdrawals from storage than injections, this year the situation has reversed with 1-3 November 2023 averaging net injections of approximately 100 MMcmd,” Odaka added in that update.
As of October 30, European storage was 99.24 percent full at approximately 113 billion cubic meters, according to a summary table included in a Rystad update sent to Rigzone on November 1.
“Underground storage facilities in Europe are nearly at full capacity with December’s TTF prices falling nine percent to approximately $14.9 per MMBtu on October 31,” Odaka stated in the update sent to Rigzone on November 1.
European storage was 97.9 percent full as of October 15, according to a summary table included in a Rystad Energy market update sent to Rigzone on October 18, and 94.68 percent full as of September 22, according to a summary table included in a Rystad Energy market update sent to Rigzone on September 28.
In an announcement posted on the European Commission website on August 18, the Directorate General for Energy noted that “the EU has reached its target of filling gas storage facilities to 90 percent of capacity roughly 2.5 months ahead of the November 1 deadline, according to the latest figures released today by Gas Infrastructure Europe”.
In a market update sent to Rigzone on July 26, Odaka outlined that European storage facilities were 84 percent full “at roughly 95 billion cubic meters as of July 24 – well positioned to reach the 90 percent target before November”.
“The withdrawal rate is currently around 6.85 MMcmd at an injection rate of 458 MMcmd,” Odaka noted in that update.
To contact the author, email andreas.exarheas@rigzone.com
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