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Bloomberg
The European Union (EU) met its gas storage filling goal two months ahead of target as the bloc braces for a tough winter with Russia limiting supplies and energy contracts trading at elevated levels throughout the continent.
European Commission President Ursula von der Leyen celebrated the milestone on Monday, telling an audience at an energy conference in Denmark that the reserves hit an average of 80%, a target the EU had aimed to reach by November 1.
The EU bolstered its storage rules earlier this year after levels last winter turned out lower than in past years, particularly in German sites controlled by Russian exporter Gazprom PJSC, a factor that led to a jump in prices.
Gas storage helps absorb supply shocks and provides around 25% to 30% of the fuel consumed in winter. With bigger reserves, European nations are slightly better placed to face a further supply cut as Gazprom starts unexpected maintenance on the Nord Stream pipeline on Wednesday.
In Germany, gas stores are filling up fast and are expected to meet an October domestic target of 85% full already next month, Economy Minister Robert Habeck said in a statement.
But even with full storage sites, Germany risks not being able to make it through the winter if Russia stops gas flows, Klaus Mueller, president of the Federal Network Agency, the country’s energy regulator, said in an interview with Bloomberg News earlier this month.
The latest data on storage levels is welcome relief for the market and helped push gas and power prices down further on Tuesday after drops of 20%
or more for the benchmark
contracts on August 29.