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Europe managed to get through this winter with record levels of natural gas stored and is poised to enter next winter in solid shape.
With the typical winter season almost over at the end of March, Europe’s natural gas reserves remain 58.7% full, a new record, Gas Infrastructure Europe data shows.
The previous record was set last winter, when Europe ended with about 56% of its natural gas reserves full.
Europe will now begin the process of replenishing its natural gas reserves. Natural gas storage is already fairly full, but some analysts have suggested that Europe may even need to cut LNG imports this summer to prevent storage from filling up prematurely. The FT reported on Tuesday.
The news contrasts with some people’s belief that Europe’s energy crisis a few years ago would lead to cascading product shortages after a poorly planned and prolonged winter season. This concern was further exacerbated by Russia’s natural gas cuts. Exports to Europe and Western sanctions forced Europe to completely withdraw from Russian natural gas.
Natasha Fielding, head of European gas prices at Argus Media, says the problem has shifted from lack of petrol to too much petrol.
Fielding noted that Europe could reach 90% of its production capacity by early August if it continues on its current path. “LNG intake may need to be reduced to avoid premature filling of the site.” It is expected to fill up at the same pace as last year.
European natural gas price indicators remain about 20% higher than a month ago.
Written by Julianne Geiger, Oilprice.com
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