Europe Hits Gas Storage Targets Early

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) has reached its 90% gas storage target more than 10 weeks ahead of target in preparation for the winter heating season and in readiness for any further gas stoppages by Russia.

Figures released by Gas Infrastructure Europe show that the percentage is above 90%, well ahead of the November 1 deadline set by the EU in 2022, following Russia's unprovoked attack on neighboring Ukraine and the subsequent energy crisis suffered in Europe due to Russia throttling supplies. Gas storage is key for security of energy supply in Europe as it can cover up to one-third of the EU's gas demand in winter. Gas storage levels reached 1,025 terawatt-hours (TWh), or 90.02% of storage capacity, which is equivalent to slightly less than 92 billion cubic meters (Bcm) of natural gas.

EU Commissioner for Energy Kadri Simson said: "Today we have reached our 90% gas storage capacity target for the winter -- well ahead of the 1 November deadline for the second year in a row. This highlights the EU's readiness for the coming winter, based on our intensive work in the past 2.5 years. The Commission will continue to monitor the situation, so that gas storage levels remain sufficiently high across the coming months, and so that we also maintain our focus on improving energy efficiency and boosting the renewable energy roll-out. I also want to take this opportunity to highlight the much more difficult situation in Ukraine, where the energy sector is under heavy and constant attack from Russia. Europe must continue to stand by Ukraine and provide the necessary support to its energy system so that the Ukrainian population too can get safely through the tough winter ahead."

Related EU data showed the EU gas and electricity markets towards the end of 2023 made considerable progress last year in diversifying supplies, incorporating more renewables and returning to stable, more affordable prices after the energy crisis of 2022. Europe relies heavily on gas imports. Domestic gas production further declined in 2023, both annually and quarterly, covering only 11% of the EU's needs. Annual production was 38 Bcm, 20% lower than in 2022 and 26% lower than in 2021. Overall imports of Russian gas dropped to 43 Bcm, compared to 79 Bcm in 2022 and 150 Bcm in 2021. Overall, the region's gas consumption was 7% lower than in 2022 and 20% lower than in 2021. The most important suppliers were Norway (30%), U.S. (19%), Russia (15%), North-Africa (14%), UK (6%), Qatar (5%), Azerbaijan (4%) and Nigeria (3%).

Imports in 2023 declined to 290 Bcm, 13% less than in 2022 (335 Bcm) and 14% less than in 2021 (336 Bcm). Alongside gas storage, there was a marked increase in liquefied natural gas (LNG) investment and imports with LNG accounting for 41% in Q4 2023. Industrial Info is tracking more than 150 LNG-related projects in Europe worth almost US$13 billion in investment. Italy and Germany are the leading markets, accounting for well over half of that total investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

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