UGS facilities are emptying – a cheap gas is left only at the bottom

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Oil and Capital Internet portal regarding the situation with the occupancy of European UGS facilities.

Alexey Gromov noted that Europe chooses gas from UGS facilities purchased earlier in order not to pay more than $1,000 per thousand cubic meters:

“Storages are filled 20% below the level they were last year. This is not yet a critically dangerous level. The buffer gas in UGS facilities is approximately 15-16%. You can't take more. If the cold season continues, European UGS facilities may be technically depleted. But then Europe still has the opportunity to buy more expensive gas on the spot market. Now, in addition to the main function of UGS facilities, namely the provision of peak loads, the function of meeting the current needs of Europeans in gas has been added due to extremely high prices on the market. That is, it is the strategy of the consumer who saves. At the same time, the UGS filling factor has additional pressure on prices,” the expert believes.