Europe’s summer LNG imports up, storage behind targets

Europe continues to import record volumes of liquefied natural gas (LNG), with deliveries since April nearing 45 billion cubic metres (bcm), TASS reported citing Gas Infrastructure Europe (GIE) data.

However, net gas injection into EU underground storage facilities remains well below target since the start of the summer season, with storage levels currently at 64.73 per cent—8.68 percentage points below the five-year average and still far from the EU-mandated 90 per cent target by 1 November.

On 19 July alone, net gas injection reached 390 million cubic metres, bringing the total injected this summer to 34 billion cubic metres out of the 61 billion cubic metres required. Storage volumes currently stand at 71 bcm—21 per cent lower year-on-year—and rank as only the seventh highest on record for July.

Gazprom and the Gas Exporting Countries Forum have warned that Europe faces difficulties meeting its winter targets amid growing competition from Asia and limited new LNG supply. The average procurement price for gas in July was about $415 per thousand cubic meters, down from $439 in June.

Despite lower-than-usual summer temperatures and reduced wind output—11 per cent of electricity in July—high gas prices are undermining incentives to inject gas into storage. Europe imported nearly 63 bcm of LNG during the last heating season, with June and July both seeing record monthly imports.

Attribution: TASS

Subediting: M. S. Salama