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EU gas storages may reach their fill target by 2023/24 heating season, IEA says

Economy Materials 5 May 2023 20:20 (UTC +04:00)
EU gas storages may reach their fill target by 2023/24 heating season, IEA says
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, May 4. Injections in the EU gas storages in the amount of around 35 bcm would be sufficient to reach the EU's 90-percent fill level target by 2023/24 heating season start, Trend reports citing the latest gas market outlook from the International Energy Agency (IEA).

According to the agency's data, the EU's gas inventory levels reached 95 percent of their working storage capacity by mid-November, standing 9 percent (or 8 bcm) above their five-year average.

"The steep drop in natural gas demand combined with continued strong LNG inflow reduced the call for storage withdrawals. Net storage withdrawals stood 38 percent (or 20 bcm) below their five-year average during the 2022/23 heating season and totaled 32 bcm. Altogether, net storage withdrawals met around 15 percent of EU gas demand over the 2022/23 heating season, compared with 20 percent during the previous winter," the report said.

As the IEA noted, these volumes show the critical role of gas storage in ensuring sufficient gas supply during peak days. In early December 2022 and late January 2023, 40 percent of the EU gas demand during the coldest winter days was met by these gas storages.

"As a consequence of the below average net withdrawals, EU storage sites closed the 2022/23 heating season 55 percent full and with inventory levels standing 67 percent (or 22 bcm) above their five-year average," the report noted.

Meanwhile, as the IEA pointed out, lower injection demand over summer 2023 could potentially contribute to an easing of market fundamentals.

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