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Underground storage facilities in Europe are nearly at full capacity.
That’s what Rystad Energy Senior Analyst Masanori Odaka stated in a gas and LNG market update sent to Rigzone on Wednesday, adding that December’s Title Transfer Facility (TTF) prices fell nine percent to approximately $14.9 per MMBtu on October 31.
As of October 30, Europe gas storage was 99.24 percent full at approximately 113 billion cubic meters, according to a summary table included in the update, which noted that this figure was up seven percent compared to last year.
Europe gas 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. The table highlighted that Europe gas storage was 92.2 percent full at the same period last year.
As of September 22, Europe gas storage was 94.68 percent full, according to a summary table included in a Rystad Energy market update sent to Rigzone on September 28.
In a report sent to Rigzone on October 31, analysts at Standard Chartered noted that EU gas storage was “99.3 percent full on October 29 according to the latest Gas Infrastructure Europe data”.
“Among the five main holders of storage, utilization is 99.4 percent full in Germany, 98.8 percent in Italy, 99.3 percent in Netherlands, 99.4 percent in France, and 99.0 percent in Austria,” the analysts added in the report.
“Total EU gas inventories stand at an all-time high of 115.62 billion cubic meters, with the week on week increase at 0.72 billion cubic meters and the increase above the five-year average at 12.48 billion cubic meters,” the analysts continued.
“While seasonal inventory draws should commence soon, only 0.87 billion cubic meters of unused nameplate storage capacity remains,” the analysts went on to state.
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”.
“Aimed at optimizing EU preparation for the coming winter, the gas storage regulation of June 2022 set a binding EU target of 90 percent filling storage facilities by 1 November each year, with interim targets for EU countries,” the announcement added.
The announcement stated that gas storage is key for security of supply in Europe as it can cover up to one-third of the EU’s gas demand in winter.
“Today’s confirmation that we have met our gas storage requirements so far ahead of schedule underlines that the EU is well-prepared for winter and this will help to further stabilize markets in the coming months,” EU Commissioner for Energy Kadri Simson said in the announcement.
“The EU energy market is in a much more stable position than it was this time last year, in good part because of the measures we have taken at EU level. But we have seen in recent weeks that the gas market remains sensitive,” Simson added.
“The Commission will continue to monitor the situation, so that storage levels remain sufficiently high as we enter the next winter. Let me recall that we can further strengthen our position through investments in renewables and energy efficiency,” Simson continued.
The announcement noted that the EU has taken a wide range of measures following the energy crisis triggered by Russia’s invasion of Ukraine to be better prepared for the winter.
“The gas demand reduction regulation (August 2022) stimulated an 18 percent drop in gas consumption from August 2022 to May 2023, and has now been extended for a further year,” the announcement highlighted.
“In terms of finding alternative sources of gas, the Commission has spearheaded a concerted international outreach for alternative gas supplies – notably in the form of Liquefied Natural Gas (LNG),” it added.
“In addition, the EU Energy Platform (through #AggregateEU) has already hosted two calls for joint purchases of gas, with a third call to be launched in the second half of September. Key investments at EU and national level have also increased the EU’s LNG import capacity and reinforced the resilience of the EU gas system,” it stated.
To contact the author, email andreas.exarheas@rigzone.com
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