EU experiences significant increase in fuel withdrawals from storage facilities
(MENAFN) The European Union has experienced a significant increase in fuel withdrawals from storage facilities, reaching the highest rate in four years. This comes as several countries, including the Netherlands, France, and Croatia, failed to meet the gas storage targets for February 1, following Ukraine’s decision to stop Russian gas transit to Europe in January.
According to data from the European Combined Gas Storage System, Russia’s gazprom ceased gas pumping through Ukraine on January 1, citing the expiration of the transit agreement and the loss of technical and legal capability to provide fuel through this route. Ukrainian authorities have repeatedly stated they will not renew the agreement, even for gas purchases from third-party countries.
As of January 29, the Netherlands' storage levels were 0.3% below the target, France’s fell short by 3.4%, and Croatia’s storage was 8.2% below the required level. This shortfall means Croatia will need to start gas pumping immediately after February 1, potentially costing the country $21 million, with gas prices ranging between $555 and $560 per thousand cubic meters.
Overall, EU gas storage facilities were 54.65% full by January 29, marking the lowest level since 2022. The withdrawal rate in January was the highest in four years, with a 17.5% decrease in storage since the beginning of the year. While the current storage level meets the minimum 50% target, it falls short of the recommended 55%, which is crucial for maintaining gas supply security in the EU.
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