Europe enters winter with historically low storage levels, reinforcing the need for LNG imports and storage flexibility

Europe enters winter with historically low gas storage levels, highlighting the need for LNG imports and increased storage flexibility, according to Gas Infrastructure Europe (GIE). On October 1, EU underground gas storage facilities were found to be 72% full, 11% below the same time last year and equal to about 74 bcm. Underground storage covered about 26% of EU gas consumption during the previous winter.

GIE Secretary General Lucie Boost emphasized that Europe faces a challenging winter if conditions are colder than expected, LNG availability is constrained, or supply disruptions occur. In such cases, demand response or uncovered demand may become necessary. Boost also noted that if storage levels decline too low, future winters will be harder to prepare for.

The outlook confirms Europe's gas infrastructure can adapt to varying supply and demand conditions. Transmission networks connect different supply sources, such as storage and LNG, with consumers across Europe. However, low starting storage, especially in the North-Western region, underscores the importance of continuing to inject gas into storage where possible, and keeping a close eye on storage levels and system conditions.

LNG is projected to supply around 40% of total European gas supply this winter. With Norway contributing about 27% of LNG, Europe also boasts around 1,600 TWh of regasification capacity, providing diversification of supply sources and access to global gas markets. However, the availability of LNG remains contingent on global market conditions and competition for cargoes.