The key facts
- EU underground gas storage reserves as of October 30 — about 74.7% versus 82.8% a year earlier (Gas Infrastructure Europe)
- In Germany, storage facilities are about 61.35% full against a target of 80% (Reuters)
- The average gas price in Europe by the end of October reached $1,000 per thousand cubic meters, with quotations approaching $1,200
Low reserves ahead of the heating season
European countries are approaching winter with historically low gas reserves in underground storage. This was stated by Russian Deputy Prime Minister Alexander Novak in a conversation with Vesti news agency journalist Pavel Zarubin: 'Historically, today we are seeing the lowest reserves in underground gas storage facilities, and how Europeans get through the winter will be a separate story.' According to Gas Infrastructure Europe, as of October 30 EU storage facilities were about 74.7% full, whereas a year earlier the figure stood at 82.8%; analysts also note a shortfall compared with average levels over the past five years.
Germany's problem and rising prices
The most noticeable shortfall has emerged in Germany: according to Reuters, as of October 30 its storage facilities were about 61.35% full, which is significantly below the established target of 80%. Gas Infrastructure Europe warns that with low reserve levels, EU countries will have fewer opportunities to respond promptly to cold snaps and supply disruptions. The situation is aggravated by the cost of fuel: according to Life.ru, the average gas price in Europe by the end of October reached one thousand dollars per thousand cubic meters, gas has become 2.6 times more expensive over the year, and by the end of the month exchange quotations were approaching the $1,200 mark.
Moscow's conditions for resuming supplies
Moscow does not rule out resuming gas cooperation with European countries. Press Secretary of the President of the Russian Federation Dmitry Peskov named two conditions for returning to discussions on supplies: buyers' interest and the availability of spare volumes among Russian exporters. He recalled that part of the fuel previously intended for Europe has already been redirected to other markets. Thus, against the backdrop of low reserves and rising prices, the question of supplies remains open, but its resolution depends on the position of both sides.
