The EU's readiness for the heating season was assessed

The current level of filling of European underground gas storage facilities (UGS) cannot be called comfortable for the confident passage of the heating season, said Dmitry Scriabin, portfolio manager of Alfa Capital Management Company. The specialist spoke about the readiness of the European Union to turn on the heating in a conversation with Lenta.ru.

Scriabin added that the current filling level does not mean an inevitable shortage at the beginning of winter, however, with such a volume of reserves, the risks shift significantly to the second half of the heating season.

The main factor in the heating season, according to the expert, is still the weather.

“A warm autumn and mild winter will reduce current risks, while persistent cold weather can quickly reduce the remaining gas in underground gas storage facilities and increase competition for available LNG volumes,” he added.

The second important factor Scriabin named was the timing of restoration of LNG supplies from Qatar, which were significantly limited due to the conflict in the Middle East. He noted that the longer the shortage of these supplies persists, the higher the tension will be in the European and global liquefied gas markets.

“In addition, Europe is approaching a complete phase-out of Russian LNG from January 1, 2027. In such a situation, a supply shortage can lead to a sharp rise in prices, especially if the weather worsens and supply disruptions persist,” the expert recalled.