Natural gas Gas price explosion unlikely at present according to association
The persistently low temperatures in Europe are causing gas consumption to rise. However, according to the European Gas Infrastructure Association (GIE), a shortage and a sharp rise in gas prices are not to be expected at present.
18.01.2025, 04:49
SDA
According to the Brussels-based association, gas withdrawal from storage facilities is currently above the 10-year average. Nevertheless, the filling levels are still relatively high and comfortable.
Prices would fluctuate more if the storage facilities were empty - and thus the dependency on imports would be greater. According to data from the association, gas storage facilities in Europe were most recently (as of Friday evening) 62.6 percent full. According to the association, Germany in particular has a large storage capacity, which helps to balance prices and ensure security of supply. Storage facilities are also well filled in Italy, Poland and Austria, for example.
According to the association, the reasons for the above-average gas withdrawal from storage are the current low temperatures across Europe and the ban on the transit of Russian gas through Ukraine since the beginning of the year.
Association sees no cause for concern at present, even with prolonged cold weather
However, nothing unexpected has occurred so far, according to the GIE. Even if the cold snap were to last longer, Europe's gas supply would still be secure. "The only disadvantage would be a lower than forecast filling level in the storage facilities." For example, a fill level of 30 percent could be reached in March, which "would result in increased attention for refilling the storage facilities next summer".
While it used to be possible to buy gas at cheaper prices in summer than in winter, the opposite trend has recently been observed, with gas prices being higher in some cases for the summer months than for the winter months. The association warned that care must be taken in the coming summer to ensure that similarly high levels are achieved for the following winter.
As announced, Ukraine stopped the transit of Russian gas at the beginning of the year. A corresponding contract expired. The EU country Slovakia, which is heavily dependent on Russian gas supplies, sharply criticized the end of the transit. The GIE has now stated that the country should have no problems with security of supply in terms of infrastructure and data.
