Gas crisis in the EU: high cost slows down replenishment of reserves

Europe is facing an acute energy crisis. Gas storage facilities are almost empty, and high prices prevent the formation of sufficient reserves for the winter. The EU countries hope for the success of the negotiations between the presidents of Russia and the United States, which can bring Russian gas back to the market. 

For the fifth year in a row, Europe has been suffering from high prices caused by the Ukrainian conflict. The cost of gas remains high all year round, and storage volumes are below normal, which increases costs. Importing liquefied natural gas is expensive, and reduced transit through Ukraine and windless weather are exacerbating the problem.

The Reden vault is only 7% full. Brussels requires 90% storage capacity by November, but is considering reducing this level to 80%. Replenishment usually begins in March, but so far the volume is minimal. Half of the capacity of some UGS remains unreserved.

Demand and prices are expected to decrease in the spring, which may stimulate restocking. However, current tariffs are still higher than in September, and if spring prices do not fall below winter prices, the storage facilities will remain empty. By mid-May, it will be clear whether Europe will be able to create sufficient reserves.