High gas prices. Europe is threatened with a record low level of raw material stocks in warehouses

this week, they almost reached the record levels from October this year. The current situation was caused by low temperatures, concerns about possible disruptions in gas supplies and a conflict around the gas pipeline.

According to data from Tuesday (December 14) from the London exchange ICE Futures, gas in the contracts of the Dutch TTF, the largest gas hub, reached the value of EUR 120 per MWh. From the beginning of 2021 to October, the prices of this raw material jumped by as much as 700 percent. – he notes. Oil and price shocks also contribute to higher inflationary pressures.

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“Gas stocks may fall below 15%.”

Gas storage in Europe could reach a record low by the end of the winter heating season, data from the Brussels-based Gas Infrastructure Europe (GIE) organization show. In October, European and British warehouses were 75% full, but that level had dropped to around 63%. in early December. This means that consumers and companies will have to deal with much higher gas prices for a long time, he writes.

– With the current level of Russian exports, warehouse inventories may fall below 15 percent by the end of March. in average weather conditions, which is a record low – said in an interview with the agency Massimo Di-Odoardo, vice president of Europe Gas & LNG research at Wood Mackenzie. “ We do not expect gas inventories to normalize until November 2022, ” added James Huckstepp, EMEA Gas Analytics Manager at S&P Global Platts.

The European Commission will come up with a proposal. It’s about gas

Meanwhile, German Foreign Minister Annaleny Baerbock said on Sunday (December 12). – In the current situation, the gas pipeline cannot be approved because it does not meet the requirements of the European energy law, and safety issues remain unresolved – she said.

The European Commission is expected to propose a system that will allow EU Member States to voluntarily buy gas together to create strategic reserves. According to Reuters, details are expected to be released this week, but “all measures are likely to come too late to increase the current stock levels” of the raw material.