BAKU, Azerbaijan, July 5. Reduced gas supplies via Nord Stream weighed on storage injections in the second half of June and are putting at risk the EU ambition to fill storage sites to 80 percent of capacity by 1 November, Trend reports with reference to the International Energy Agency (IEA).
“Inventory levels reached over 57 percent of their working storage capacity at the end of Q2. In Ukraine gas storage levels were critically low by the end of June, standing at just 20 percent of their working storage capacity according to data from Gas Infrastructure Europe. Arranging timely gas supplies to Ukraine in Q3 will be crucial to refill storage sites to adequate levels by the beginning of the heating season,” reads the latest IEA report.
The report reveals that in the European Union gas storage sites stood 25 percent (or 8.5 bcm) below their five-year average at the beginning of April, which marks the end of the European heating season.
“The European Union adopted a new storage regulation according to which storage sites have to be filled to at least 80 percent of their capacity before the winter of 2022/23, and to 90 percent ahead of the following winter periods. The EU will strive collectively to fill 85 percent of their underground gas storage capacity in 2022. Notably, the filling obligation will be limited to a volume equal to 35 percent of the annual gas consumption of each member state over the past five years.
Several EU members states have adopted fill targets at 90 percent of working storage capacity ahead of the 2022/23 heating season. The strong inflow of LNG, together with lower consumption, enabled a strong storage build-up in Q2. Storage injections stood 20 percent above their five-year average and totaled close to 30 bcm. Consequently, the storage deficit of the European Union decreased significantly, inventory levels standing just 3 percent (or 2 bcm) below their five-year average at end of June.”
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