Storage well filled

Gas price explosion unlikely at present

An OMV gas pipeline

(Bild: AFP/Dieter Nagl)

The persistently low temperatures in Europe are causing gas consumption to rise. However, Gas Infrastructure Europe (GIE) does not currently expect a bottleneck or a sharp rise in gas prices.

Although gas withdrawal from storage facilities is currently above the 10-year average, according to the Brussels-based association, levels are still relatively high and comfortable, according to the European gas infrastructure association GIE.

Prices would fluctuate more if the storage facilities were empty - and thus the dependency on imports would increase. "It is now easier to combine imports and withdrawals from storage, which is an advantage for consumers."

Filling levels currently relatively high
According to data from the association, gas storage facilities in Europe were most recently (as of Friday evening) 62.6 percent full. The storage facilities in Germany had a fill level of 67.4 percent. According to the association, Germany in particular has a large storage capacity, which helps to balance prices and ensure security of supply.

The storage facilities in Austria are also well filled. According to the daily status report from Austrian Gas Grid Management (AGGM), which is responsible for the gas grid, the storage level is currently just under 70 percent (as of January 16).

According to the association, Italy and Poland are also still well supplied. According to the association, the reasons for the above-average gas withdrawal from storage facilities are the current low temperatures across Europe and the ban on the transit of Russian gas through Ukraine since the beginning of the year.

No cause for concern even in the event of 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.

Ukraine stops transit of Russian gas
As announced, Ukraine stopped the transit of Russian gas at the beginning of the year. A corresponding contract expired. This meant that Russian gas no longer reached Austria via Ukraine.

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.