Europe’s Gas Glut Eroding: Reuters

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.