Gazprom warns of narrowing window for Europe's gas storage replenishment ahead of heating season

MOSCOW, September 10. /TASS/. The approaching heating season is rapidly narrowing the window for replenishing gas stocks in Europe's underground gas storage (UGS) facilities, with prices already reaching levels seen during the late 2022 energy crisis, Gazprom said in a statement.

The holding company believes that high gas prices and lagging storage injection rates increase risks to the reliability of gas supplies for European consumers during the cold season. According to data from Gas Infrastructure Europe cited by Gazprom, European UGS facilities were 67.3% full as of September 8, with the volume of working gas 12.8 billion cubic meters lower than a year ago.

"Gas prices in Europe have reached levels characteristic of the energy crisis of December 2022. At major hubs, day-ahead delivery prices have exceeded $1,000 per 1,000 cubic meters. The onset of autumn and the approaching heating season mean that opportunities to replenish gas stocks in UGS facilities are rapidly diminishing. Under these conditions, the European market is particularly vulnerable to any surge in demand, import disruptions, and competition with Asian consumers for LNG," the statement read.

Earlier, TASS reported that Europe risks starting the heating season with record-low gas stocks. The average rate of stock replenishment in EU underground storage facilities in July was among the lowest recorded since 2011, and it accelerated only slightly in August. Given these figures, Europe may only manage to fill its storage facilities to 70-75% capacity by the traditional start of the autumn-winter period – an all-time low for the beginning of the heating season.

In early September, the rate of gas injection into EU underground storage facilities is among the highest seen in recent years. At the same time, gas prices at European hubs are approaching late 2022 highs, reflecting the European Union's push to fill its storage sites ahead of winter, even at very high prices. However, Europe has already missed the summer months that are most favorable for gas injection.