Unexpectedly: Europe has even more gas than it needs

Warm weather, accumulation of blue fuel, increase in imports of liquefied gas have caused even more gas in European countries than required.

According to Bloomberg, Europe has not yet had time to raise the temperature in their homes, and gas storage facilities are almost completely filled. Gas prices have also dropped sharply, now at less than a third of their unprecedented peak in the summer.

Undoubtedly, the main risks are still ahead. With the onset of a cold snap, Europe will begin to use the accumulated reserves. And there is also concern about possible sabotage at energy facilities. Nevertheless, the end of October pleased the governments of European countries.

Although demand is still limited due to mild weather, consumption will increase with lower temperatures and current prices. Giacomo Masato, analyst and senior meteorologist for the Italian energy company Illumia, notes:

“Europe’s gas glut is expected to last until at least December. It is unlikely that Europe will see a prolonged cooling spell in November.”

Experts predict that a reduction in gas demand in 2022 is expected by about 7-9%, “mainly due to the shutdown of large industrial consumers.” But this is too little to reach the ambitious target EU at 15%.

According to data from Gas Infrastructure Europe, Europe’s efforts to increase stocks show that EU storage facilities are 93.6% full, while Germany is 97.5% full. Although this means providing some comfort for the market, in Germany this volume is only enough for 2 months (in cold weather) to meet demand. So Europe will have to continue to attract cargoes of liquefied gas.

However, ships continue to arrive. Northwest Europe plans to receive 82 LNG tankers this month, which is 19% more than in September, states Bloomberg.

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