FT: EU is rapidly running out of gas storage due to cold weather and import cuts

The EU is now running out of gas storage at the fastest rate since the energy crisis began three years ago. This is due to a sharp drop in gas imports due to competition from Asian buyers and cold weather, which increases energy demand. The Financial Times writes about it.

Since the end of September, gas reserves in the EU’s underground storage facilities have fallen by 19% compared to “single digit” numbers in previous years.

The increase in consumption occurred on the back of lower LPG imports and intermittent cold weather, which increased reliance on domestic supplies.

The level of gas reserves in the EU now stands at 75%, still above the average of the last ten years.

“Europe will need to rely more on its underground storage this winter than in the past two years to offset lower imports of liquefied natural gas and meet rising demand,” said Natasha Fielding, head of the European gas pricing at pricing agency Argus Media.

The last time Europe’s gas storage was emptied so quickly was in December 2021, when Russia began cutting off pipeline supplies ahead of its full-scale invasion of Ukraine.

If this trend continues for a long time, restocking for next year could become more expensive. In addition, the reduction in Russian gas supplies through Ukraine at the end of next year, when the transit contract expires, will present more difficulties for European countries.

Let’s recall that Bulgaria has already warned that it may stop the transfer of Russian gas to Central Europe if Gazprom cannot find a payment solution.