Gas storage levels have been severely depleted amid an abnormally cold snap in Europe, the latest Gas Infrastructure Europe data showed. Natural gas volumes in European underground storage facilities (UGS) decreased to 33%, the smallest figure over the past two years. The lowest storage-filling rate of 18% was recorded in 2018.
Statistics on gas storage levels in Europe appear dismal. The volume of natural gas in underground storage facilities in Italy reduced to 39%, in Austria - to 33%, in Germany and the Netherlands - to 27%, and in France - to 18%. Gas is usually withdrawn from UGS facilities before early April. Thus, gas reserves will continue to decline, experts are confident.
Interestingly, Europe started to empty out its underground gas storage sites in February 2021. The main reason for such strong demand for natural gas was the so-called Beast from the East 2, freezing temperatures across the European territory. Russia may benefit from the current situation. Gazprom believes that a significant shortage of liquefied natural gas in Europe could boost demand for Russian gas.
Notably, in January 2021, the Russian energy giant ramped up its global gas supplies to a record high. LNG exports amounted to 19.4 billion cubic meters, posting an increase of 45.4% against the same period in 2020. Among Gazprom's major consumers that increased their gas purchases in January 2021, there are Germany (+32.4%), Italy (+221.5%), Turkey (+20.8%), France (+77.3%), the Netherlands (+21.2%), as well as Poland (+89.9%).
