• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 23 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days What fool thought this was a good idea...
  • 17 hours Bad news for e-cars keeps coming
  • 8 days A question...
  • 13 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 14 days They pay YOU to TAKE Natural Gas
The High Cost of Moving Industry Offshore

The High Cost of Moving Industry Offshore

Offshore industrialization is facing mounting…

Companies Store Natural Gas In Ukraine As EU Sites Near Capacity

Despite the risks of war, energy firms are storing growing volumes of natural gas in Ukraine’s storage facilities as the EU’s sites are nearing capacity, the Financial Times reports.

Gas storage sites across the EU are now more than 99% full, according to data from Gas Infrastructure Europe. The European Union hit its target to have storage 90% full by November 1 months in advance.

Despite the high levels of storage, supply risks still exist. Analysts have been warning that neither Europe nor Asia should be complacent about winter gas supply as prolonged colder winter weather, delivery disruptions, and geopolitical tensions could upend the LNG market once again and send prices soaring.

This year, despite risks of potential hits due to the war, traders have started to store natural gas at storage sites in Ukraine, taking advantage of the lower costs and high available storage capacity. The commodity can be bought anywhere and sent to Ukraine via reverse flows in pipelines from Hungary, Slovakia, and Poland.

With the EU storage nearly full, Ukraine’s available capacity could help the bloc ease gas supply concerns ahead of the winter, Brussels-based think tank Bruegel said in an analysis in July. 

Ukrainian gas storage could help Europe’s security of supply, as the EU can use spare capacity in Ukraine to top up stored gas volumes for the coming winter, Bruegel said.

Last week, Ukraine’s Prime Minister Denys Shmyhal said that the country is ready to allow non-resident traders to use up to half of its natural gas storage capacity. Ukraine has 30 billion cubic meters (bcm) of underground storage capacity. As much as 12 to 15 bcm of this capacity could be allowed to be used by foreign traders to store gas, according to the prime minister.

LNG supply to Europe is currently stable ahead of the winter months, but supply risks and long cold snaps in Europe and Asia could quickly draw down the EU storage, tighten the gas market, and result in fresh price spikes, analysts say.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Bucky Barkingham on November 01 2023 said:
    Leaving valuable assets in the hands of the corruptocrats in Ukraine? What could go wrong?

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News