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EU Storage to End Winter 12bcm Below Last Winter at 44bcm: Timera

NATURAL GAS

European storage inventories at the end of winter are likely to be significantly lower than last year but the region should have ample gas with a normal winter according to Timera Energy.

  • European gas markets are expected to remain in a tight regime into 2024-25 with end of winter storage forecast 12bcm lower that last winter at 44bcm.
  • The rise in European gas prices last week was driven by structural issues as well as supply side headlines and ‘the gas crisis is not over.’ European gas & LNG markets are balancing on demand with Russian supply losses exceeding LNG supply growth.
  • Timera see asymmetric upside risks to prices from a cold winter in Europe or North East Asia or from any material supply disruptions despite current record storage inventories and demand 15-20% below pre-crisis levels.
  • The demand impact from general economic weakness is unclear but demand is assumed to be 25bcm higher this winter compared to last winter mainly led by power demand.


Source: Timera Energy

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