Europe may not be able to fill gas storage facilities before winter due to supply shortages - Reuters
Kyiv • UNN
Equinor CEO stated that Europe may not achieve the goal of filling storage facilities to 80% due to market tensions. The reasons are competition with Asia and the cessation of Russian gas supplies.
Europe will likely not be able to meet its own target of filling gas storage facilities to at least 80% before the start of the heating season. The reasons are the tense situation on the global gas market and increased competition from Asian buyers. This was stated by the CEO of the Norwegian energy company Equinor, Anders Opedal, reports Reuters, writes UNN.
We do not believe that Europe will necessarily be able to fill its storage facilities more than 80% this autumn
According to him, due to the lower level of gas reserves, which currently stands at 54%, Europe will be more vulnerable to fluctuations in market prices this winter than in previous years.
The war between the US and Iran has effectively halted shipping through the Strait of Hormuz, in particular the supply of about a fifth of the world's liquefied natural gas (LNG), which usually goes to Asian consumers.
At the same time, Europe can no longer rely on Russian pipeline gas, as these supplies are gradually being halted due to the war in Ukraine.
Equinor notes that Europe relies on LNG to cover about 30% of its import needs, but currently these volumes are insufficient.
The gas that was supposed to come from Qatar was supposed to go to Asia, and this means that the LNG that was coming to Europe earlier this year is now going to Asia