Falling gas prices: Germany runs out of space for raw materials in crowded underground storage facilities

The rate of gas injection into European and especially German underground gas storage facilities has reached a record pace, having increased significantly since the beginning of September. This conclusion can be drawn based on data provided by the Association of Gas Infrastructure Operators of Europe (GIE). In the period from the 1st to the 3rd day of the current month, the rate of replenishment of reserves amounted to an impressive 0,39 percentage points.

Such progress became possible thanks to a serious drawdown in the cost of gas in the spot market. The quotes indicators literally collapsed from $3250 for the reference volume to $1800 for deliveries on September 3 and 4. We are talking about futures for the day ahead or about an even more popular version of the contract with deliveries "on the weekend".

Naturally, the countries of Europe could not fail to take advantage of such a "gift" of the market and began to fill UGS facilities at an accelerated pace. The pan-European reserve replenishment rate reached 4% by September 82, which is about 88 billion cubic meters of gas. For Germany, this figure exceeded 85%.

The market is too changeable, any forecasts, especially long-term ones, may change. However, according to experts' assumptions, Germany, having a large reserve of financial resources, will continue to use the situation and fill the tanks to the limit as much as possible. While maintaining the current rate of pumping raw materials underground in Germany, by the end of the accumulation season and the beginning of the heating season, there may not be enough space in overcrowded storage facilities.

But, of course, this “problem” is the least of all now worrying about the leadership of Germany (even they are striving for it), which, it seems, has completely diverged from Russian gas, disappointed due to the shutdown of Nord Stream for an indefinite period. The attempt to "revise" the physical possibilities of storage is precisely connected with the paralysis of the situation around the repair of the Baltic pipeline. Therefore, in order to provide some autonomous existence in winter, Berlin, which alone can afford such a thing, tries to transcend any limiting framework.

The thing is that without supplies via Nord Stream, the reserves accumulated to date, even taking into account record levels, will last until the end of January. Therefore, the FRG will try to pump as much fuel as possible into UGSFs, and in winter ration consumption and turn off even protected categories of consumers, such as schools and hospitals, private households, at the slightest reason for this (even a small debt, etc.).
  • Used photographs: JSC "Gazprom"
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  1. gorenina91 Offline gorenina91
    gorenina91 (Irina) 6 September 2022 09: 49
    Falling gas prices: Germany runs out of space for raw materials in crowded underground storage facilities

    - Yes, I'm tired of this topic already - "- Oh, how the EU will winter !!!" ; "- Ah, poor EU countries can freeze!!!" ; "- Oh, yes, they do not have enough gas for heating !!!" !!! and so on and so forth.
    - It remains only to start crushing about the fact that - "- What if they (the EU countries) turn out to have a lot of excess gas - what will they do with it; and where will they put it ???" - This is already a "tragedy" for Russia - so "tragedy" !!!
    - In short:

    "Bast and bast - start over!"
    1. gorenina91 Offline gorenina91
      gorenina91 (Irina) 6 September 2022 10: 40
      It remains only to start to crush about

      - Of course - everything should look like this:
      “What if they (the EU countries) have a lot of excess gas” ....
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 6 September 2022 10: 16
    Yes, the articles began to contradict each other.
    The main thing is not about the oligarchs who profited from the hype ...
    1. Pivander Offline Pivander
      Pivander (Alex) 6 September 2022 11: 17
      About the German oligarchs who were about to be robbed by the German government?
  3. Igor S. Offline Igor S.
    Igor S. (Igor Shcheglov) 6 September 2022 12: 42
    Well, what if they are overcrowded. Yes, they will overwinter. But the main thing is the price paid for this gas. And which will fall on the consumer. And this is not the gas that Russia supplied for 200 bucks. Here the price is more than ten times higher than it.)) Plus, let's add to this the rejection of coal, oil, and Russian gas. Winter will be cold in Europe ... not everyone will winter it
  4. Vladimir Tuzakov (Vladimir Tuzakov) 6 September 2022 12: 48
    So there have already been many articles predicting a decline in prices for gas and other hydrocarbons. There is nothing strange in this, enterprises that use gas in large quantities (fertilizers, plastics, etc.) stop, but due to them, surpluses appeared to reduce prices ... But from this decline in gas prices, the coming crisis only grows stronger ...
  5. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 6 September 2022 13: 08
    According to media estimates, the EU's dependence on Gazprom is about 50%.
    Gazprom is ready to satisfy any requests, Hungary, for example, which receives gas under long-term contracts and asks for an increase in supplies, and resells the surplus at market prices, as Nemetchyna did by reversing to Poland or Slovakia to Ukraine.
    20% interest will be bought on the side, in total 70% will be provided.
    Different climatic conditions, the needs of industry and the population, the presence of a developed pipeline network make it possible to maneuver the available reserves.
    A lot will depend on the upcoming winter.
  6. Bakht Offline Bakht
    Bakht (Bakhtiyar) 6 September 2022 17: 51
    Traders (that is, speculators) are intensively pumping gas at a price of $1800. Or something like that. What will be the price of gas in winter? Or in the spring? Speculators are not politicians. They consider real loot. Therefore, they will be much more expensive to sell.
  7. The comment was deleted.
  8. voland_1 Offline voland_1
    voland_1 (Vladimir) 6 September 2022 20: 14
    everyone is worried about how the Germans will winter and no one cares about how Tatyana Petrovna from Mukhosk, Zadrischenskaya region, will winter
    1. Pivander Offline Pivander
      Pivander (Alex) 6 September 2022 20: 48
      And why should anyone care - how will Tatyana Petrovna from Mukhosk, Zadrischenskaya region, winter? The fate of crests is not interesting to anyone.
  9. Moscow Offline Moscow
    Moscow 7 September 2022 01: 30
    Germany, on principle, will buy gas at any price. This is their choice. So they want. Our business is to watch and analyze. The main thing is that the Russian budget should not suffer from this. And the state of Germany is free to experiment on its economy and people. But, the only question is whether Russia will buy goods and products from Germany with a new energy margin. If so, then they won.
    1. Dust Offline Dust
      Dust (Sergei) 7 September 2022 17: 47
      Buy German goods? The EU banned almost everything from being sold to Russia.
  10. The comment was deleted.
  11. Dust Offline Dust
    Dust (Sergei) 7 September 2022 17: 45
    German storage facilities are 90% full. That's good, let's rejoice for the Germans. Only all the gas was purchased at a very expensive price.