Free Trial

Europe’s Gas Glut Eroding: Reuters

NATGAS

Europe’s gas storage refilling is proceeding slower than normal this summer, lowering the likelihood of space running out before the onset of winter heating season, Reuters’ John Kemp said.

  • Inventories across the EU and UK were 908 TWh as of July 8, according to GIE, up by 238 TWh since March 31.
  • By comparison, stocks increased by 272 TWh over the same period in 2023.
  • Based on patterns over the last decade, storage is projected to hit 1,204 TWh before winter depletion starts in late October/ early November.
  • Projected storage still exceeds maximum technical capacity of the system of 1,145 TWh. Nonetheless, projections have already been revised down from 1,280 TWh forecast on March 31.
  • The persistent October-November contango in gas prices signals the need to slow injections and LNG arrivals as much as possible before November, when drawdown starts, Kemp said.
142 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Europe’s gas storage refilling is proceeding slower than normal this summer, lowering the likelihood of space running out before the onset of winter heating season, Reuters’ John Kemp said.

  • Inventories across the EU and UK were 908 TWh as of July 8, according to GIE, up by 238 TWh since March 31.
  • By comparison, stocks increased by 272 TWh over the same period in 2023.
  • Based on patterns over the last decade, storage is projected to hit 1,204 TWh before winter depletion starts in late October/ early November.
  • Projected storage still exceeds maximum technical capacity of the system of 1,145 TWh. Nonetheless, projections have already been revised down from 1,280 TWh forecast on March 31.
  • The persistent October-November contango in gas prices signals the need to slow injections and LNG arrivals as much as possible before November, when drawdown starts, Kemp said.