EU expected to achieve 80% gas storage target
The EU is expected to achieve its November 1 new minimum standard for natural gas storage.
This new standard, adopted in June, plays a major role in ensuring Europe’s energy security ahead of the winter peak usage period. The meeting of the goal comes despite the recent summer which saw significant price rises, as well as EU-wide natural gas rationing. The Russian invasion of Ukraine earlier this year and subsequent disruptions to Russian natural gas supply caused significant disruptions to the European market. The achievement of the storage targets will be welcome news for European consumers, many of whom have been bracing for power cuts and energy restrictions his winter. Mild autumn weather and full storage capacity have resulted in a significant decrease in natural gas prices in Europe.
The new capacity standards—coupled with lower natural gas prices—will reduce concern regarding European energy security. Most significantly, Russia’s purported natural gas blackmail of European will likely be curtailed. This will enable European countries to continue supporting Ukraine’s government through a combination of aid and transfer of military materiel. Decreasing natural gas prices will also serve to diminish financial income to Russia, which it has used to finance its war efforts.
