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Netherlands to miss 115 TWh gas storage target before winter

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Netherlands to miss 115 TWh gas storage target before winter

This digest was compiled by AI from multiple sources — links to the originals are below.

The Netherlands will miss its target to fill natural gas storage sites to 115 terawatt-hours before winter, Dutch gas network operator Gasunie said on Wednesday. The operator warned that without additional policy the country is insufficiently prepared for a scenario in which the winter would be one of the harshest. The announcement comes as EU gas storage levels sit at 63%, below the five-year average of 80%.

Key Facts

  • Gasunie said the Netherlands will no longer meet the previously set filling target of 115 TWh for this winter, approximately half of Dutch gas consumption.
  • The target was based on the amount of gas required during the harshest winter of the past 30 years.
  • EU gas storage levels are at 63% full, below the five-year average of 80% and lower than the nearly 76% at this time last year.
  • ING commodities strategists Warren Patterson and Ewa Manthey said it will be difficult for the EU to hit even the lower storage target of 75% ahead of the heating season.

Storage Target Miss

Gasunie warned on Wednesday that the Netherlands will miss its target to have 115 terawatt-hours worth of gas supply ahead of winter. The filling target was proposed by Gasunie Transport Services, a wholly owned subsidiary of Gasunie, and was established based on the amount of gas required during the harshest winter of the past 30 years. The operator said that missing the target does not necessarily mean the Netherlands would not have enough gas supply for the winter or that security of supply is at risk. Gasunie stated that without additional policy, the Netherlands is insufficiently prepared for a scenario in which the winter would be one of the harshest.

European Supply Pressure

Across Europe, current inventory levels are at the lowest in 17 years, and supply available for purchase is tighter than it was ahead of the 2022/2023 winter. Qatar’s LNG flows are now mostly cut off by the Strait of Hormuz crisis, further constraining supply. EU gas storage levels at 63% full right now are below the 5-year average of 80% and also lower than the nearly 76% at this time last year. ING’s commodities strategists Warren Patterson and Ewa Manthey wrote that at the current rate, it will be difficult for the EU to hit even the lower storage target of 75% ahead of the heating season. They added that this raises the prospects of forced buying, increasing upside risk for gas prices.

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