Europe on Track to Fill Gas Storage Before Winter

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Europe is currently on track to reach its gas storage targets before winter hits, according to the latest data from Gas Infrastructure Europe (GIE).

Storage levels currently stand at 72%, almost half a percent up on the five-year average and close to those of the 10-year average. The European Union (EU) has a stated goal of reaching 85% of full storage capacity by November 1 to help ensure that the region has sufficient gas to weather the coming winter as Russia continues to throttle supplies to the region. This will increase to 90% in subsequent years.

Underground gas storage (UGS) has always played 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. UGS is usually refilled in summer months when prices are traditionally lower, but with Russia slashing pipeline flows, the EU has been forced to make up the shortfall by buying up more expensive LNG. Russian gas flows to Europe have been reduced since last autumn. At first it was seen as a Russian reaction to Europe refusing to authorize the final steps of the new Nord Stream 2 gas pipeline into Europe.

Typically, before the Ukraine invasion, Russia supplied 27% of the EU's imported oil and 40% of its gas, earning about 400 billion euro (US$409 billion) a year in return. Since then, the EU imposed an immediate ban on three-quarters of Russian oil imports. The remainder via pipeline was allowed to appease pro-Russian Hungarian President Victor Orban. The oil ban will cover 90% of imports by the end of the year. It is also working to reduce its Russian gas reliance by two-thirds by the end of the year. For additional information, see March 16, 2022, article - Europe Plans to Cut Russia From Energy Mix and June 6, 2022, article - Europe Agrees to Ban on Russian Oil.

In an effort to stave off severe winter shortages, the European Commission (EC) is calling 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. In June, gas flows from Russia to the EU were less than 30% of the average recorded in the period 2016-2021. Russia, through its state-owned Gazprom, reduced supplies through the Nord Stream I pipeline by 40% in mid-June. The line was then offline in July for 10 days due to scheduled maintenance and a turbine-delivery dispute, but when it was brought back online, Gazprom deliveries to Europe were cut to just 20% of normal--33 million cubic meters daily. For additional information, see August 1, 2022, article - Europe Aims to Cut Gas Use by 15% Over Winter.

To date, almost half of EU countries have faced complete or partial gas cut-offs by Russia, with the latest victim being Latvia, which was accused of violating supply conditions. Industrial Info has reported on supplies being cut to other nations including Finland, Germany, Poland and Bulgaria. For additional information, see June 1, 2022, article - Russia Cuts Gas Supplies to Finland and August 2, 2022, article - Germany Forced to Bail Out Uniper in $15 Billion Deal.

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