Gas storage levels in Europe are at an all-time low

Brussels – Gas storage levels in Europe are at an all-time low. The EU average currently stands at 55.7 per cent, even though storage facilities should by now be almost full in preparation for winter. Two factors are having a particular impact: the expected end of Russian gas imports and the blockade of the Strait of Hormuz, which is affecting both available volumes and prices.

The situation, as shown in the interactive chart which is updated daily using AGSI GIE EU data, varies significantly from one Member State to another. The country with the highest level of gas in storage is Portugal, with a fill rate of 84 per cent. Next comes Italy, with a fill rate of 74.3 per cent. Rome’s strong performance is aided by the country’s regasification capacity, which is ensured by the numerous terminals SNAM operates. The problem for Italy is therefore not so much storage capacity as rising prices, as ENI’s chief executive Claudio Descalzi has also highlighted in recent days. According to Descalzi, there may also be supply problems from 2027 onwards, due to the permanent halt to Russian gas supplies.

Among the major countries, Spain has storage levels (thanks in part to substantial LNG imports from Moscow) close to Italy’s. France is just below the EU average (54.7 per cent), while Germany stands at 46.2 per cent. At the bottom of the list is Sweden, which has a worrying storage fill rate of 11.5 per cent.

According to an analysis by Wood Mackenzie, in the best-case scenario where Qatar returns to full operational capacity in September, the fill rate of gas storage facilities in the EU would reach 75 per cent on 1 November. In recent years, the average fill rate on that date has been 90 per cent. If, on the other hand, the Strait of Hormuz were to remain closed in the coming weeks, the percentage would fall below 70 per cent. In such a scenario, a sharp rise in prices would be inevitable for a commodity that has proven to be more sensitive to geopolitical shocks than oil. Not even LNG could offer immediate relief. According to the same analysis, liquefied natural gas would not be able to significantly improve the situation in Europe before 2028 significantly.

English version by the Translation Service of Withub