Reuters: European gas storage facilities are 59% full

Analysts claim that EU will have enough gas in storage next winter.

The remaining buyers of Russian pipeline gas in Central Europe are considering alternative imports if transit through Ukraine stops, writes Reuters.

Gas prices in Europe fell to the level recorded in February 2022, before Russia's full-scale invasion of Ukraine. Mild weather and high renewable energy production have limited demand and reduced the amount of gas used from storage. Gas prices reached a three-year low in February. The agency reminds:

An agreement signed in 2019 between Ukraine's Naftogaz and Russia's Gazprom, which allows Russian gas to pass through Ukraine, ends at the end of the year, raising new concerns about potential disruptions to gas supplies to Europe. Earlier this month, Ukraine said , which has no plans to extend the agreement, although it is unclear whether there will be a loophole through which European companies can book transit capacity on their own, avoiding a direct agreement between Russia and Ukraine.”

According to Gas Infrastructure Europe, by the end of the winter season, which ends on March 31, Europe's gas storage facilities are 59% full, which is a record high for this time of year. James Waddell, head of European gas and global LNG at consultancy Energy Aspects, says:

“Europe is on track for another record high in gas inventories at the start of the summer, and the continent looks set to once again be on track to fill its storage capacity early for next winter.”

According to the EU mandate established after Russia's full-scale invasion of Ukraine, European gas storage facilities must be 90% full by November 1. Gas in storage typically accounts for around 25% of winter gas consumption in Europe, where it is the main heating fuel. High stock levels should ensure Europe has enough gas to secure supplies next winter and avoid sharp price shocks.

The most vulnerable European countries are Austria and Slovakia, as they still import a significant portion of their gas from Russia via Ukraine. But even they say they are working on new sources of supply to limit the impact if supplies are disrupted.

Austrian energy company OMV said it had prepared for scenarios in which Russian gas supplies would be cut off. A company spokesman told Reuters by email that it has entered into a long-term liquefied natural gas (LNG) regasification contract at the Gate terminal in Rotterdam.

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