Dutch gas storage levels hit lowest level in years
Gas storage levels in the Netherlands dropped to 5.8% of capacity on Tuesday, their lowest level in at least a decade, and it is unclear how quickly they can be refilled over the summer, Dutch gas company Gasunie said.
Supply cuts linked to the war in the Middle East and the soaring prices they have triggered make it "uncertain" whether market participants will bring stores to required levels by November.
"Current prices do not make it obvious that companies will start buying gas in time," Gasunie said, as high prices make it unattractive to buy gas and then store it.
LOWEST IN THE EU. Dutch gas storage levels are the lowest in the European Union, far below the average of 28%, according to Gas Infrastructure Europe data.
Energy Commissioner Dan Jorgensen last week urged EU countries to start filling stores early ahead of next winter and consider using a flexibility in EU law to reduce their filling targets to 80% of capacity - rather than the official 90% target, a letter seen by media showed.
Brussels is concerned that a dash to meet the filling target could trigger further price spikes.
There is no immediate concern over gas supplies in the Netherlands, Gasunie said, as liquefied natural gas flows are stable and winter has ended.
But the natural gas grid operator said stores will be run down further in the coming weeks, before the filling season starts in April.
Two of the main stores will be depleted altogether by the end of the month, as Gasterra, the gas trader that buys and sells gas on behalf of the Dutch government, winds down operations following the end of gas production at the Groningen field in the north of the Netherlands.
The Dutch government has tasked state-owned energy company EBN with stepping in if other market participants fail to bring storage to required levels.
Last year the government announced a €21.6-B ($25.1-B ) loan facility to help EBN reach its target.
($1 = €0.8623)
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