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Russia - Europe has reduced the extraction of gas from underground storage to the autumn level

Russia (bbabo.net), - Since the beginning of the year, gas withdrawal from underground storage facilities in Europe has decreased by almost three times. According to Gas Infrastructure Europe (GIE), from December 30 to January 8, less than 3 billion cubic meters of gas were pumped out of them. The reasons for the decrease in production are warm weather in the region and an increase in the supply of liquefied natural gas (LNG).

If such rates are maintained, then by the end of the heating season, 20-30 billion cubic meters of gas may remain in European underground gas storage facilities (UGS). Moreover, on December 31, as well as on January 1 and 2, gas injection into UGS facilities was twice the volume of gas withdrawn. By January 8, about 59 billion cubic meters of gas remained in European UGS facilities.

But so far it is impossible to say with certainty that Europe will be able to painlessly go through the winter period. The surge in LNG supplies from the United States was associated with a jump in gas exchange prices in Europe at the end of last year. They rose above 2000 thousand dollars per thousand cubic meters, which unexpectedly made the European market for LNG exporters a premium in comparison with supplies to the countries of the Asia-Pacific region (APR). As soon as prices at European sites fell, the APR market regained its premium status and the flow of LNG to Europe decreased.

As for the weather, the rest of the winter will hardly be as warm as the first days of the new year - above 10 degrees Celsius. And the more UGS facilities are emptied, the higher the nervousness on the European gas market will be. Already on January 7, the level of gas withdrawal from their storage facilities returned close to the winter level - 500 million cubic meters. At the same time, the exchange gas prices, which by the end of December dropped to $ 800 per thousand cubic meters, returned to values ​​above $ 1,000 in January.

Russia - Europe has reduced the extraction of gas from underground storage to the autumn level