EU gas reserves no longer at record levels, Gazprom request for Ukraine is 42.4 mcm
MOSCOW. Dec 8 (Interfax) - Gas reserves in underground storage facilities in Europe are no longer at historic record levels, industry association Gas Infrastructure Europe said. Active withdrawals from underground gas storage facilities amid cold weather have moved the current trajectory of reserve levels below those of the same days in 2019.
December 2023, according to the current weather forecast, could be quite harsh in Europe: one degree colder than last December and two degrees below the climate norm. This will become an additional catalyst for the consumption of gas reserves from storage facilities.
UKRAINIAN TRANSIT
The Ukrainian GTS Operator (OGTSU) accepted a transportation application from Gazprom on Friday for 42.4 mcm, the Ukrainian company reported. The nomination for Thursday was the same. Capacities are declared only for one of the two entry points into the country's gas transportation system - the Sudzha gas measuring station. The application for the corridor through the Sokhranovka GIS was not accepted.
The published nomination is the maximum technically possible application, taking into account all the restrictions introduced by the Ukrainian side.
Gazprom's official representative, Sergei Kupriyanov, told reporters that Gazprom is supplying Russian gas for transit through Ukrainian territory in volumes confirmed by the Ukrainian side through the Sudzha GIS of 42.4 mcm on December 8. The application for the Sokhranovka GIS was rejected.
OGTSU declared force majeure on the acceptance of gas for transit through Sokhranovka, since it allegedly cannot exercise operational and technological control over the Novopskov compressor station. The route through Sokhranovka provided transit of more than 30 mcm per day. Gazprom believes that there are no grounds for force majeure, and there are no obstacles to continuing to operate as before.
EUROPEAN MARKET
Wind generation in Europe remains below normal levels. Wind turbines have provided 14% of the region's electricity needs since the beginning of December, the WindEurope association said. In December 2022, their share was 17%, and in November 2023 - 22%.
The spot gas price in Europe added 1% on Thursday. The contract for day-ahead delivery at the TTF hub in the Netherlands closed at $440 per thousand cubic meters.
The price gap for LNG in Asia has increased compared to Europe. January futures for the JKM Platts index (Japan Korea Marker, reflects the spot market value of cargo delivered to Japan, South Korea, China and Taiwan) is trading at $573; futures for LNG supplied to Northwest Europe (LNG North West Europe Marker) are at $455.
RESERVES IN EUROPE
The level of natural gas reserves in Europe has become a key indicator for the global market. The region as a whole continues to pump into storage facilities.
Current inventory levels have reached 92.15%, which is 10 percentage points above the average for the same dates over the past five years, Gas Infrastructure Europe said.
During the gas day on December 6, reserves decreased 0.58 percentage points.
European LNG terminals operated at an average capacity of 62% in November; since the beginning of December, their average load has been 60%.
RESERVES IN USA
Reserves in American underground gas storage facilities are becoming increasingly important as the country actively increases exports.
The United States has begun its season of gas withdrawal from storage facilities. During the next reporting week, gas reserves fell 3.3 bcm, which is three times more than the standard volume for this time of year.
The country's current inventory level is at 77%, which is 5 percentage points higher than the average over the past five years, the Energy Information Administration (EIA) said.