Equipo Nizkor - Gas reserves in EU UGS facilities at all-time high, withdrawals rise as temperatures fall.

Gas reserves in underground storage facilities (UGS) in Europe remain at historical highs for this time of year, storage facilities are 81% full. Local gas prices fell below $600 per 1,000 cubic meters for the first time in almost a year and a half. At the same time, withdrawals from UGS facilities is growing against the background of the upcoming cooler weather in many EU countries this week.

According to Gas Infrastructure Europe (GIE), gas outflow from UGS facilities in EU countries on January 16 amounted to 459 mln cubic meters (the lowest figure for the entire duration of GIE's observations since 2014), while the injection volume of 18 mln cubic meters. Europe's gas injection into storage facilities has fallen from record levels of last month and is currently below the withdrawal levels, which is expected to grow this week amid colder weather.

The heating season in Europe started on November 14, and EU countries have withdrawn 19.85 bln cubic meters of gas from storage facilities since then. At the same time, the total gas removal from UGS facilities on the 64th day since they reached their record filling volumes is already 12.44% lower than the five-year average for that day.

UGS facilities in Europe are now 81.07% full, which is 19.5 p.p. higher than the 5-year average, containing 87.78 bln cubic meters of gas. Gazprom cautioned, however, that even near maximum gas stocks at UGS facilities in large European countries do not ensure a reliable passage through the fall-winter period. Because of changes in logistics and gas supply sources, the winter demand on UGS facilities in Europe will be greater than in prior years.

Meanwhile, Gazprom supplied gas to Europe through Ukraine in the volume of 32.6 mln cubic meters per day via the Sudzha gas pumping station on January 18. The application for deliveries through Sokhanovka was rejected by the Ukrainian side. "Gazprom is supplying Russian gas for transit through the territory of Ukraine in the amount confirmed by the Ukrainian side via the Sudzha gas pumping station, [amounting to] 32.6 mln cubic meters on January 18. The application for deliveries through Sokhanovka was rejected," the company's representative said. The day before, the pumping volume also reached 32.6 mln cubic meters.

Earlier, the Nord Stream AG company reported that three threads of the Nord Stream 1 and 2 offshore gas pipelines had suffered unprecedented damage on September 26. Swedish seismologists later revealed that two explosions had been recorded along the Nord Stream pipelines on September 26. The Swedish Prosecutor's Office said on November 18 that the explosions were an act of sabotage and that the investigation was ongoing. Russia opened a criminal case on an act of international terrorism in connection with the explosions. It is currently impossible to set the timing for the gas pipelines' restoration.

18Jan23

Gas reserves in EU UGS facilities at all-time high, withdrawals rise as temperatures fall

[Source: Tass, Moscow, 18Jan23]

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Derechos \| Equipo Nizkor