EU Gas Storage Filling Slower Than Expected Ahead of Winter
European gas storage facilities are filling up at a slower pace than usual ahead of winter, leaving some countries to worry about potential shortages. LNG imports have increased in recent days, reaching 299 million cubic meters per day, but this is still not enough to restore stocks to last year's levels.
The difference between current and last year's gas storage levels has grown significantly, reaching 14.2 billion cubic meters by August 16. In comparison, last year's injection rate was higher, with 330 million cubic meters pumped per day in August, compared to this year's 260 million.
As a result, underground storage facilities (UGS) are currently filled to only 61%, equivalent to the amount of gas taken out during the previous heating season. Gas prices in Europe have risen again due to the heat and increased demand, with supplies for a month ahead from the TTF hub trading at $756 per thousand cubic meters.
The main factors contributing to this situation are the high winter supply prices, which are still cheaper than current ones, making it unprofitable for private traders to fill up storage facilities. Additionally, European authorities have been slow to implement measures to force companies to replenish stocks.