Europe, Ukraine Storage Injections Rise Further

Europe's storage inventory levels continue to rise as the flow of cheap gas needs a home, and relatively strong renewable output has reduced gas demand for power generation in some big markets such as the UK.

However, electricity demand in the UK has also been rising. According to analysis by Cornwall Insight, since July, there has been a gradual rise in energy demand back up towards 2019 levels. "In fact, demand hit the same level as last year at the beginning of August for the first time since Covid-19 lockdown measures were introduced," it said. Its data is compiled from National Transmission System (NTS) demand plus embedded wind and solar output over a seven-day rolling average.

As of September 2, Europe's facilities were 91.44% full, compared with 89.9% August 18. Almost two thirds of the 1015 TWh were in four countries: Netherlands is 82.9% full with 115.8 TWh; Italy is 94.3% full with 185.7 TWh; Germany 92.8% full with 211.8 TWh and France 95.2% full, with 124.0 TWh.

Ukraine is the sole country in the outside-Europe category in the Gas Infrastructure Europe database and injections there are rising faster than in Europe on average. The total injected has gone up 6.7% since August 18, and was at 84% full, with 271 TWh, on September 2. On the same date last year it held 192.8 TWh. Since then, virtual reverse flow at the Ukraine-Slovakia border and a more attractive customs regime in Ukraine have encouraged traders in Europe to make more use of the bloc's largest facilities.