Page 8 - GLNG Week 24 2022

GLNG COMMENTARY GLNG

Europe’s gas storage tanks already

half full, but will it be enough?

COMMMENTARY GAZPROM cuts supplies of gas as Europe races Italy have 55.95% and 53.9% respectively and are
to fill its storage tanks European gas storage by far the biggest consumers of gas. As Germany
tanks crossed the halfway mark on June 7 and is home to the largest gas tanks in Europe it acts
are now 51.12% full, as the EU races to replenish as a EU distribution hub for gas. It already has
its supplies ahead of the coming winter. That race enough to meeting its domestic needs in this
became even more poignant after Russia’s state- coming winter and the excess can be distrib-
owned gas behemoth Gazprom cut supplies to uted to other EU countries as demand requires.
Europe, claiming Siemen’s failure to return com- Between them German and Italy already account
pressor units on time have forced the Russian for more than 40% of the all the gas in storage in
companies to reduce supplies by 60%. Europe.
The pumping of gas into European under- Ukraine has even bigger storage facilities and
ground gas storage facilities in May not only is a major source of gas during the winter, but
reached a record level for this month, but hit its tanks are only 18.6% full as of June 16. Still,
the highest level since records started in 2011, even at low levels the gas in storage in Ukraine is
according to Gas Infrastructure Europe (GIE). already equal to more than 10% of all gas stored
LNG imports to Europe also reached a record in Europe.
level last month.
Some 15.6bcm of gas were pumped into Gazprom cut off
European storage facilities in May, up by 52% Gazprom reported on June 14 it was reducing
compared with last year’s pumping in the same gas supply via Nord Stream 1 to 100mn cubic
period and by 11.5% compared with the previ- metres per day, down from a previous plan of
ous record of May 2018. 167 mcm per day. Russia said that the technical
Europe went into last year’s heating season watchdog Rostekhnadzor ordered a temporary
which starts on October 1 with the lowest levels halt as parts to repair some Siemens equipment
of gas in storage in many years. Tanks were only were unavailable due to western sanctions. As a
74% full on October 1, 2021 against the 80%- result, only three gas-pumping units remain in
95% that is usual in previous years. operation, it said.
However, boosted supplies of LNG from the Gazprom’s “technical problems” come after
US and Qatar combined with a relatively mild Gazprom halted deliveries to some European
winter meant that the EU scrapped through the countries after companies in Bulgaria, Denmark,
season which ended on March 31. European Finland, the Netherlands, and Poland refused to
tanks were still 26.3% full on that day, well ahead pay for natural gas in rubles as demanded by the
of the 10%-12% that analysts feared might be left. Russian government.
The distribution of gas storage in Europe is Gas transit to Europe via Ukraine has also
not even. The Polish gas tanks, for example, are been caught up in the war and deliveries via
already 96% full and a new pipeline bring gas Sokhranivka in Ukraine that normally account
from Norway to Poland is due to come online for a third of the total was taken offline in May
at the start of October, making Poland the first as the war affected Ukraine’s gas transit business
European country to entire break its dependence for the first time. The Gas Transmission System
on Russian gas. Portugal’s tanks were also over Operator of Ukraine (GTSOU) said it took the
90% full by June, although Portugal relies heavily station offline as it was now in Russian occupied
on LNG imports and is not an integral part of the territory.
European gas pipeline network. Deliveries to Europe via Ukraine slumped to
The UK, Czechia and Denmark gas tanks are 9bcm from 14bcm between January and April
also just over 70% full putting them in comfort- this year compared with the same period a year
able positions. However, many other EU coun- earlier.
tries have far less, with Sweden at the bottom of Gazprom was transiting the maximum
the list with only 10% and Croatia and Bulgaria allowed volumes for two months after the war
both with less than 30%. in Ukraine started in February of about 109mn
However, the key countries of German and cubic metres per day,and used the reserved

P8 www. NEWSBASE .com Week 24 17•June•2022