European gas storage is entering the summer injection season under pressure, with weak seasonal spreads and below-average inventory levels complicating refill efforts.
In the summertime, when the weather is warm, you can inject gas into storage sites. EU gas storage sites have now switched to injection mode, with daily filling rates reaching nearly 250 mcm/d this week.
Around 0.6 bcm of gas has been injected into storage since 1 April, the official start of the filling season. This is almost 10% above the five-year average.
That said, storage levels are still 30% below working capacity and stand 30% below the five-year average.
Reaching the EU’s 90% storage target would require around 10 bcm of additional injections compared to last year, while reaching a less ambitious 80% target would require similar injection levels to last year.
Seasonal spreads remain in negative territory, which may reduce the commercial incentive for storage injections, particularly in Q2.
What is your view? How will European gas storage sites refill this summer? How will seasonal price spreads evolve?
Source: Greg MOLNAR (Linkedin)
