Russia's Gas Storage Levels Hit Record High as EU Faces Shortage

Russian gas storage levels have reached 90%, according to Alexei Miller, chairman of PJSC Gazprom's management committee. This is a significant milestone, as the operational gas reserve in underground storage facilities will reach a new historical record of 73.296 billion cubic meters this year.

The high storage levels mean that Russian consumers can feel confident about their natural gas supply during the upcoming winter season. Miller emphasized that 'our Russian consumers, consumers that operate from underground storage facilities in the UGS zone (I would like to mention our Belarusian friends), can feel absolutely confident this coming winter that no cold temperatures will worry them.'

In contrast, European Union gas reserves are only at 65.85%, which is 17% lower than the average for September and the lowest level in 13 years. This has led to price spikes in EU gas markets, with prices rising 37.31% over the past month and 125.08% since January.

Russian domestic natural gas use is currently priced at around €6.73/MWh, while EU gas costs significantly more at €71.96/MWh, a mark-up of nearly 976%.