Page 14 - EurOil Week 38

EurOil PIPELINES & TRANSPORT EurOil

European gas storage 94% full, but

injection rates slow down

EUROPE EUROPE’S gas storage facilities were 93.7% full to traders, including an easing of tariffs and the
as of September 16, with 1,041 TWh of gas in introduction of a customs-free storage regime
Ukraine's storage reserve, data published by Gas Infrastructure for up to three years.
facilities are nearly Europe (GIE) shows. The pace at which gas is being injected into
88% full. While this is an unusually high amount for storage in Europe has slowed, to around 12 TWh
the time of year, it was marginally less than what per week from 16 TWh a month ago. The same is
was stored at the same point in 2019. But this true for Ukraine, which has seen injection rates
data does not include Ukraine, which GIE noted fall to 6 TWh from 10 TWh per week.
separately had 38% more gas stored than a year The difference in day-ahead prices and prices
ago, at 282.8 TWh. Ukraine’s underground stor- for Q1 2021 delivery has narrowed, making stor-
age reservoirs were 87.8% full. age less attractive than it was in August. That
Storage volumes in Europe have been build- difference was only €3 ($3.6) per MWh on Sep-
ing up at an untypically high rate this year as tember 17 at the Dutch TTF hub, versus €5.4 per
demand has been weaker because of coronavi- MWh on August 24.
rus (COVID-19) lockdowns and the resulting Besides improving terms, Ukraine has also
economic fallout. However, storage levels were secured more storage business thanks to the
unusual last year as well, as there was a record temporary easing of restrictions on reverse
influx of LNG. A global glut in LNG supply also flow at its Velke Kapuszany gas interconnection
dragged down prices, incentivising companies to with Slovakia. These restrictions were loosened
stock more. to mitigate against the impact of maintenance
Much of the extra gas stored in Ukraine this work at the smaller Budince interconnection.
year was injected on behalf of European com- According to Slovakian transmission system
panies. Ukraine has taken steps in recent years operator (TSO) Eustream, that work will cease
to make its vast storage network more attractive in October. ™

P14 www. NEWSBASE .com Week 38 24•September•2020