The persistently low temperatures in Europe are causing gas consumption to rise. From the perspective of Gas Infrastructure Europe (GIE), no bottleneck and a sharp increase in natural gas transport are currently expected.
The Brussels association said gas withdrawals from storage facilities are currently above the ten-year average, but filling levels are still relatively high and comfortable, according to European gas infrastructure association GIE.
Prices would fluctuate more if storage facilities were empty – and thus dependence on imports would increase. “Now it is easier to combine imports and withdrawals from warehouses, which is beneficial for consumers.”
Fill levels are currently relatively high
Association data shows that gas storage facilities in Europe were recently (as of Friday evening) 62.6 percent full. The storage facilities in Germany had a filling rate of 67.4 percent. There is a large storage capacity, especially in Germany, which helps to balance prices and guarantee security of supply, the association said.
The warehouses in Austria are also well filled. According to the daily management report of the Austrian Gas Network Management (AGGM), which is responsible for the gas network, the fill level is currently almost 70 percent (as of January 16).
According to the association, Italy and Poland are also still well supplied. According to the association, the reasons for the above-average gas extraction from the storage facilities are the currently low temperatures across Europe and the transit stop of Russian gas through Ukraine since the beginning of the year.
Even if it is cold for a long time, you don’t have to worry
However, nothing unexpected has happened so far, the GIE said. Even if the cold wave lasts longer, European gas supplies will still be guaranteed. “The only downside would be a lower than forecast level in the storage facilities.” A level of 30 percent could be reached in March, which would “require more attention to replenish storage facilities next summer.”
While previously it was generally possible to purchase gas at lower prices in the summer than in the winter, recently the opposite trend has been observed, with gas prices sometimes being higher in the summer months than in the winter months. The association warned that next summer it must be ensured that a similarly high level is also reached for the following winter.
Ukraine has stopped the transit of Russian gas
As announced, Ukraine stopped the transit of Russian gas at the beginning of this year. A corresponding contract expired. This meant that no more Russian gas came to Austria via Ukraine.
Slovakia, which is highly dependent on Russian gas supplies, sharply criticizes the end of the transit. The GIE now says that the country should not have any problems with security of supply with a view to infrastructure and data.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
