Europe’s Depleted Gas Storage Might Not Get Refilled Ahead Of Next Winter
Europe may have trouble replenishing its natural gas storage facilities by next winter as storage levels are at decade lows.
Russia, which supplies one-third of Europe’s natgas needs, has said delivery of gas through vast networks of pipelines will continue.
On Monday, Russia’s gas producer Gazprom published a statement warning there will be “serious challenges” in replenishing European gas storage facilities for next winter considering “such significant gas volumes” are needed and never has this happened ahead of the summer months.
Gazprom said there could be daily restrictions on injections because of the technological capacities of the pipeline infrastructure. Then there’s also the risk of damage to pipelines that transit gas from Russia through Ukraine. On top of this, European markets will be competing with increasing demand from Asian markets.
Bloomberg data shows that German underground storages “are depleted” by 70.6%, while French ones are 77.1%. Gas withdrawal from European storage lasts until late March and, in some cases, early April. Gas injections begin shortly after to resupply the continent for the summer months and ahead of next winter. However, since storage levels are at decade-low levels, filling up ahead of next winter could be a challenge.- READ MORE
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