Reserves in Europe's gas stores below 80%, Gazprom Ukraine transit order is 40.5 mcm
MOSCOW. Jan 15 (Interfax) - The level of gas reserves in European underground storage facilities has dropped below 80% as wintery air temperatures cover the region.
UKRAINIAN TRANSIT
Ukrainian GTS Operator (OGTSU) accepted a gas transit order from Gazprom on Monday for 40.5 million cubic meters, the Ukrainian company reported. Sunday's order was the same. Capacities are declared for one of two entry points into the country's gas transportation system, the Sudzha gas measuring station. The transit order via the Sokhranovka GIS was not accepted.
Gazprom's official representative, Sergei Kupriyanov, told reporters that Gazprom is supplying 40.5 mcm of Russian gas for transit through the territory of Ukraine, confirmed by the Ukrainian side, via the Sudzha GIS on January 15, while the order for transit via Sokhranovka was rejected.
OGTSU has declared force majeure on accepting gas for transit through Sokhranovka, since it allegedly cannot exercise operational and technological control over the Novopskov compressor station. Sokhranovka can provide transit of more than 30 mcm of gas per day. Gazprom believes there are no grounds for force majeure, and no obstacles to continuing to work as before.
EUROPEAN MARKET
Current forecasts for January 2024 promise quite cold weather in Europe, one degree below normal for the month, and 3 degrees colder than last year.
The spot gas price in Europe rose 4% on Friday. The contract for day-ahead delivery at the TTF hub in the Netherlands closed at $363 per thousand cu. m.
Wind generation in Europe has provided an average of 20% of the region's electricity needs since the beginning of January, the WindEurope association said. In January 2023, the contribution of wind power plants was 16%, and was 24% in December 2023.
There is a noticeable gap in LNG prices in Asia compared to Europe. February futures for the JKM Platts index (Japan Korea Marker, reflects the spot market value of cargo delivered to Japan, South Korea, China and Taiwan) are trading at $400; futures for LNG supplied to Northwest Europe (LNG North West Europe Marker) are at $349.
RESERVES IN EUROPE
The level of natural gas reserves in Europe is one of the key indicators for the global market.
The current figure has reached 79.72%, which is 11 percentage points above the average for the same dates over the past five years, Gas Infrastructure Europe said. Although Europe is actively limiting the use of gas and its reserves, the current level of reserves is already beneath that of the same days in 2023 and 2020 (the GIE database contains observational data since 2011).
During the gas day on January 13 (a day off), reserves decreased 0.4 percentage points. Since the beginning of last week (January 8), the intensity of gas withdrawals has been significantly higher than the average for the last five years.
European LNG terminals operated at an average productivity of 56% in December 2023, while since the beginning of January, their average load has been at 52%.
RESERVES IN U.S.
The state of reserves in American underground gas storage facilities is becoming increasingly important as the country actively increases its exports.
The United States continues to withdraw gas from storage facilities. During the last reporting week, gas reserves fell 2 bcm, which is lower than usual at this time of year.
The country's current inventory level is at 69%, which is 15 percentage points above the average over the past five years (and above the five-year range), the Energy Information Administration (EIA) said.