The level of blue fuel reserves in European gas storages (UGS) has dropped below 40% of the total. According to Interfax, the consumption of fuel from underground gas storage facilities in January 2022 was one-third higher than in the previous five years
The publication notes that the winter in European countries was quite mild and did not require huge spending on heating. However, amid a sharp rise in gas prices, the owners of gas reserves decided to use them to protect against high prices.
“Many contracts with suppliers use an exchange index ‘one month ahead’ and now the price of its execution is at an all-time high […] This protective behaviour of importers has seriously reduced the physical import of gas into Europe”, writes Interfax.
According to Gas Infrastructure Europe, as of 27 January, gas reserves in European storage dropped to 39.65%, 15.6% below the average for the last five years. Energy group RWE admitted that Europe would not be able to cope without gas imported from Russia.