European gas reserves fall below 60%, Gazprom requests 42.4 mcm for transit via Ukraine
MOSCOW. March 15 (Interfax) - A key indicator of the gas market - the level of reserves in Europe's underground storage facilities - has fallen below 60%. Europe is saving fuel in all directions and reducing its fuel purchases, including on the world market. As the European LNG import infrastructure develops, the level of its utilization is getting lower and lower.
UKRAINE TRANSIT
Gas Transport System Operator of Ukraine, or GTSOU, has accepted a nomination from Russia's Gazprom today to transport 42.4 million cubic meters of gas through the country, as on Thursday, data from GTSOU show. Capacity was requested only through one of two entry points into Ukraine's Gas Transport System, the Sudzha metering station. A request was not accepted through the Sokhranovka metering station.
"Gazprom is supplying Russian gas for transit through the territory of Ukraine at the volume confirmed by Ukraine via the Sudzha metering station at 42.4 mcm on March 15, with booking via the Sokhranovka metering station declined," Gazprom spokesman Sergei Kupriyanov told reporters.
GTSOU has declared a force majeure with respect to acceptance of gas for transit through Sokhranovka, claiming that it cannot control the Novopskov compressor station. The route through Sokhranovka had provided transit of more than 30 mcm of gas per day. Gazprom believes that there are no grounds for the force majeure or obstacles to continuing operations as before.
EUROPEAN MARKET
The current forecast for March promises very warm weather - two degrees above the climatic norm and last year's temperatures.
The spot price for gas in Europe rose 3% on Friday: the day-ahead contract at the TTF gas hub in the Netherlands closed at $285 per thousand cubic meters.
Wind turbines have generated 18% of Europe's electricity on average since the beginning of March, according to WindEurope data. Wind generation averaged at 19% in March 2023 and 22% in February 2024.
The spread between LNG prices in Asia and those in Europe is widening: in Asia, the most expensive futures contract for March on the JKM Platts index is $303 per thousand cubic meters, and futures under the LNG North-West Europe Marker are $269 per thousand cubic meters.
EUROPEAN INVENTORIES
The level of gas storage in Europe is a key indicator for the global market. The region as a whole continues to pump gas into storage.
Europe's underground gas storage facilities are currently 59.88% full, which is 17 percentage points above the average for the same date over the past five years, according to Gas Infrastructure Europe. Gas storage has again been at its highest since records began in 2011 due to mild weather over the past week.
Inventories fell 0.2 percentage point during the March 13 gas day. Gas withdrawals have been significantly below the five-year average since the last ten days of January.
European LNG terminals operated at 50% capacity in February 2024 and 55% since the start of March.
U.S. INVENTORIES
Gas inventories in UGS facilities in the United States are of increasing importance for the global market, as the country is boosting gas exports.
Gas withdrawals continue, with storage falling by 1.1 bcm, which is two times less than usual for the time of year.
The current level of inventories is 49%, which is 14 percentage points above the five-year average, according to the U.S. Energy Department's Energy Information Administration.