Page 16 - GLNG Week 34

GLNG EUROPE GLNG

European gas storage volumes

reach 90% capacity

PERFORMANCE EUROPE’S gas storage facilities were almost LNG imports have continued rising in 2020,
90% full on August 18, data published by Gas even as many of Europe’s pipeline gas suppliers
Infrastructure Europe (GIE) shows, marking an have seen weaker sales.
unusual high for the time of year. According to GIE, some 995.6 TWh of gas
Europe has seen an unprecedented build-up is currently in storage in Europe, out of a total
in gas storage volumes over the past year, owing capacity of 1,107 TWh. At the same point last
to several factors. The continent’s LNG imports year there was only 977.4 TWh of gas in storage.
soared in 2019, as higher production capacity in Gas storage levels in Ukraine also continue to
the US and elsewhere drove down prices. This rise steadily, reaching 253.8 TWh on August 18,
encouraged increased coal-to-gas switching GIE data shows, up from 221.2 TWh a month
but also gave traders an incentive to store more earlier and 198.4 TWh on June 18. Ukraine’s
volumes. nameplate gas storage capacity is 320.3 TWh,
Towards the end of last year companies but it has not stored this much in decades.
also expanded their stocks in anticipation of a The country has adopted new measures
potential disruption to Russian gas supplies via in recent years to encourage European trad-
Ukraine. This disruption was averted as Moscow ers to use its underground reservoirs, includ-
and Kyiv were able to agree an 11th-hour deal ing reduced tariffs and a customs warehouse
covering continued transit in 2020. scheme. This scheme allows foreign firms to
Gas demand has also been weaker this year, keep their gas in Ukraine for up to 1,095 days
not only because of coronavirus (COVID-19) without paying customs duties and other taxes.
lockdown measures, but also unusually mild These measures have had some success, with
weather in the winter months. Hot weather storage operator Ukrtransgaz reporting on
in recent weeks and a resulting increase in air August 5 that foreign companies accounted for
conditions has shored consumption levels, nearly a quarter of the gas in its facilities, or 5.2bn
however. This spurred a rebound in prices ear- cubic metres. This was almost four times the vol-
lier this month. ume at the same point last year.™

P16 www. NEWSBASE .com Week 34 28•August•2020