Europe Faces Low Natural Gas Reserves
(MENAFN) Europe’s natural gas reserves are notably depleted for this season, a news agency has reported, attributing the drop to increased demand for air conditioning during a regional heatwave.
The underground storage facilities are currently filled to about 62%, whereas the usual level for early summer is closer to 80%, which normally provides a strong cushion before the winter heating period.
The extreme temperatures in Asia have also led to the rerouting of fuel shipments away from Europe, as global buyers compete fiercely for the scarce supplies.
Consequently, European natural gas futures have remained near a two-week peak, indicating that “the continent needs to pay up to keep supply coming,” according to the news outlet.
Despite these pressures, the EU might still manage to replenish its gas reserves to around 80% by summer’s end, the news agency quoted a Goldman Sachs report as saying.
The European Union depends on imports for almost 90% of its natural gas, with Russia continuing to hold a considerable portion of this supply despite existing sanctions.
In May, European Commission President Ursula von der Leyen announced a strategy to phase out all Russian oil and gas imports by 2027, under the EU’s REPowerEU initiative.
This plan focuses on ending the bloc’s reliance on fossil fuels from Russia and accelerating the transition to renewable energy sources.
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