The occupancy rate in Europe's natural gas storage dropped below 50% as of February 10, a significant decrease from 67% occupancy rate recorded in the same period last year.
According to data compiled from Gas Infrastructure Europe, France, one of the biggest energy consumers in the region, has the lowest natural gas storage occupancy rate in the EU at 29.85%.
Thus, France remains below the 41% target set by the European Commission.
Among the non-EU countries, natural gas occupancy rate in Ukraine and the UK is recorded at 9.33% and 25.73%, respectively.
While Portugal's gas storage is full, followed by Sweden with 88% and Spain with 69%.
EU countries, which consume over 400 billion cubic meters (bcm) of natural gas annually, halted natural gas purchase from Russia due to the war in Ukraine. Also, the natural gas transit agreement between Russia and Ukraine expired on Dec. 31, 2024.
According to data published by the Ukrainian government for the end of 2023, the amount of Russian gas transported to Europe via pipelines fell by 28.4% last year compared to 2022, down to 14.6 bcm.
To enhance energy security, EU countries turned to liquefied natural gas (LNG) imports and implemented steps on efficiency.
Storage levels are closely monitored amid concerns that the market may shrink this summer as Europe needs more gas to replenish its dwindling reserves.
Due to geopolitical developments and the concern surrounding natural gas storage levels in Europe, the price of natural gas rose to a two-year high of €58.75 per megawatt-hour in March futures contracts traded on TTF, the Netherlands-based virtual natural gas trading point with the highest depth in Europe.
- 'Energy crisis not over yet'
Francesco Sassi, a Bologna-based research fellow in energy geopolitics and markets at Ricerche Industriali ed Energetiche (RIE), told Anadolu that current EU gas storage levels reflect both 'the best and worst' aspects of the failed gas security policies implemented since the peak of the 2022 crisis.
Policymakers at the EU and national levels believed it was sufficient to mildly intervene to set new regulations and thresholds to secure supplies, Sassi said.
'Markets did not believe it at the time, and today, facing the consequences for the failed policies, are betting against the same EU gas security,' he added.
Sassi stated that by the end of the winter, there will likely be a gas deficit which will be replenished through costly policies that will accelerate a global rush to restock supplies.
'This could affect all players in the global gas market, including EU neighbors, as much as Asia and Latin America,' he noted.
'Ultimately, the scenario signals that, contrary to what has been told for many months by policymakers and international institutions, the energy crisis did not end yet,' he concluded.
- Total gas storage capacity
Europe's total natural gas storage capacity stands at around 113 bcm.
Among the 27 EU member states, 18 have natural gas storage facilities. Germany, Europe's dominant economy, has the highest gas storage capacity at 25.1 bcm.
Italy has 20.2 bcm of storage capacity, followed by the Netherlands with 14.7 bcm, France with 13.2 bcm, Austria with 9.8 bcm, and Hungary with 6.9 bcm. Other countries with storage capacity include Belgium, Bulgaria, Czechia, Denmark, Spain, Croatia, Poland and Romania.
Meanwhile, Gas Infrastructure Europe updated the color system representing gas storage levels in Europe. According to experts, this change may have been made to avoid causing panic.
Previously, storage levels between 100% and 71% were marked green for safety, 70% to 51% were labeled yellow as noteworthy, and below 50% was marked red as dangerous.
However, as of February, the occupancy rate between 100% and 41% is marked in green, 40% to 31% is yellow and below 30% is red.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr