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Released September 12, 2022 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) has hit its target to fill gas storage to 80% before the original deadline of November, just as Russia threatened to withhold gas supplies "indefinitely."
The region has been battling to obtain enough gas from a variety of sources over recent months as Russia continues to withhold gas supplies via its state-owned company, Gazprom.
"The EU's gas storage is now more than 80% full, well ahead of the 1 November target date," said Kadri Simpson, Commissioner for Energy for the EU. "Member States and companies have done a great job. Let's continue filling where the level is still lower and implement the EU demand reduction plan. This will help us get through winter safely."
Underground gas storage (UGS) plays a key role in reinforcing the security of supply and flexibility of the European gas system. The EU-27 gas storage capacity amounts to 1,147 terawatt-hours (TWh) across 18 Member States--roughly 100 billion cubic meters (bcm)--representing up to a quarter of the EU's total annual gas demand. Going forward the EC has mandated that all Member States reach 90% storage well before winter. In an effort to stave off severe winter shortages, the European Commission (EC) called on member states to cut their gas use by 15% from August 1 of this year until 31 March 2023 in preparation for further disruptions of gas supply, or a full cut-off, by Russia. For additional information, see August 1, 2022, article - Europe Aims to Cut Gas Use by 15% Over Winter.
Russia has been using gas as a weapon against Europe, which imposed economic sanctions against it for its invasion of Ukraine in February. In the latest twist, Gazprom announced that the recent shutdown of gas flows through the Nord Stream 1 pipeline to Germany would be extended "indefinitely." It claimed the shutdown was due to technical difficulties, a reason ridiculed by most leaders in the EU. The decision came hours after G7 countries agreed to implement a price cap on Russian oil in an effort to reduce funds going to the regime of Russian President Vladimir Putin.
Nord Stream 1 is the single-largest pipeline for gas coming from Russia to Europe, via Germany, and has a capacity to deliver 55 bcm of gas a year. It has been running at just 20% of that capacity since June as tensions continue to rise. The latest interruption in gas flows comes just weeks after the pipeline came back online after a scheduled 10-day maintenance shutdown. Industrial Info is also tracking the stalled Nord Stream 2 pipeline project which was 99% complete toward the end of last year. As the war commenced, Germany refused authorization to finish the project--a project that would have doubled the gas capacity for Russian gas into Europe--and which many critics claimed would have increased Europe's over-reliance on Russia. For additional information, see February 23, 2022, article - Germany Halts Authorization of Nord Stream 2 Natural Gas Pipeline.
The majority of the work on the US$11 billion subsea pipeline was finished toward the end of 2021. The 1,200-kilometer pipeline has two parallel 48-inch wide pipelines--doubling the capacity of the original Nord Stream Pipeline--and capable of transporting up to 110 bcm of natural gas per year. It runs from southwest of Russia's St. Petersburg through the territories and waters of a number of EU countries before ending at Greifswald on the German coast.
Russia's stoppages have already cost the country tens of billions of euro in lost revenues, despite increased sales to China. Gazprom's recent eight-month report showed that gas exports to countries outside Russia amounted to 82.2 billion cubic meters, which was 37.4%--or 49.1 bcm--lower than the figure for the same period of 2021. The 27 countries of the European Union accounted for 73%--or 29 bcm--of the reduction in global demand, Gazprom stated. Gas consumption went down in the U.K. as well by about 5 bcm.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The region has been battling to obtain enough gas from a variety of sources over recent months as Russia continues to withhold gas supplies via its state-owned company, Gazprom.
"The EU's gas storage is now more than 80% full, well ahead of the 1 November target date," said Kadri Simpson, Commissioner for Energy for the EU. "Member States and companies have done a great job. Let's continue filling where the level is still lower and implement the EU demand reduction plan. This will help us get through winter safely."
Underground gas storage (UGS) plays a key role in reinforcing the security of supply and flexibility of the European gas system. The EU-27 gas storage capacity amounts to 1,147 terawatt-hours (TWh) across 18 Member States--roughly 100 billion cubic meters (bcm)--representing up to a quarter of the EU's total annual gas demand. Going forward the EC has mandated that all Member States reach 90% storage well before winter. In an effort to stave off severe winter shortages, the European Commission (EC) called on member states to cut their gas use by 15% from August 1 of this year until 31 March 2023 in preparation for further disruptions of gas supply, or a full cut-off, by Russia. For additional information, see August 1, 2022, article - Europe Aims to Cut Gas Use by 15% Over Winter.
Russia has been using gas as a weapon against Europe, which imposed economic sanctions against it for its invasion of Ukraine in February. In the latest twist, Gazprom announced that the recent shutdown of gas flows through the Nord Stream 1 pipeline to Germany would be extended "indefinitely." It claimed the shutdown was due to technical difficulties, a reason ridiculed by most leaders in the EU. The decision came hours after G7 countries agreed to implement a price cap on Russian oil in an effort to reduce funds going to the regime of Russian President Vladimir Putin.
Nord Stream 1 is the single-largest pipeline for gas coming from Russia to Europe, via Germany, and has a capacity to deliver 55 bcm of gas a year. It has been running at just 20% of that capacity since June as tensions continue to rise. The latest interruption in gas flows comes just weeks after the pipeline came back online after a scheduled 10-day maintenance shutdown. Industrial Info is also tracking the stalled Nord Stream 2 pipeline project which was 99% complete toward the end of last year. As the war commenced, Germany refused authorization to finish the project--a project that would have doubled the gas capacity for Russian gas into Europe--and which many critics claimed would have increased Europe's over-reliance on Russia. For additional information, see February 23, 2022, article - Germany Halts Authorization of Nord Stream 2 Natural Gas Pipeline.
The majority of the work on the US$11 billion subsea pipeline was finished toward the end of 2021. The 1,200-kilometer pipeline has two parallel 48-inch wide pipelines--doubling the capacity of the original Nord Stream Pipeline--and capable of transporting up to 110 bcm of natural gas per year. It runs from southwest of Russia's St. Petersburg through the territories and waters of a number of EU countries before ending at Greifswald on the German coast.
Russia's stoppages have already cost the country tens of billions of euro in lost revenues, despite increased sales to China. Gazprom's recent eight-month report showed that gas exports to countries outside Russia amounted to 82.2 billion cubic meters, which was 37.4%--or 49.1 bcm--lower than the figure for the same period of 2021. The 27 countries of the European Union accounted for 73%--or 29 bcm--of the reduction in global demand, Gazprom stated. Gas consumption went down in the U.K. as well by about 5 bcm.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
