EU “Burns” Its Gas at the Fastest Pace Since the Energy Crisis

The EU is emptying its gas storage facilities at the fastest pace since the energy crisis three years ago due to the cold snap and declining maritime supplies, which have increased demand. The Financial Times newspaper writes about this, reports epravda.com.ua. The volume of gas in the storage facilities decreased by about 19% from the end of September to mid-December, according to Gas Infrastructure Europe. Over the previous two years, there was only a single-digit decrease over the same period, as temperatures above normal made it possible to keep stocks relatively full even during the winter heating season, and enterprises reduced demand due to high prices. “Europe is relying much more on its underground storage facilities this winter than in the last two years to compensate for lower imports of liquefied natural gas (LNG) and meet growing demand,” said Natasha Fielding, head of European gas pricing at Argus Media. Europe is also facing more competition for LNG imports from Asian buyers, who are attracted by prices lower than those seen in recent years. This led to a slowdown in imports and the need to make more use of stocks from storage facilities. The last time the continent’s gas storage facilities emptied so quickly by mid-December was in 2021, when Russia began cutting pipeline gas supplies on the eve of a full-scale invasion of Ukraine. Currently, the EU’s storage capacity is 75%, which is slightly higher than the average of the last 10 years, before Western European governments began to reduce dependence on Russian imports. For example, in the middle of December last year, the capacity rate was approaching 90%.