Huge gas reserves in European UGSFs turned into billions in losses

European UGSFs and their filling rates are purely formal figures for the convenience of maintaining statistics. In fact, the structure of accounting and operating is much more complicated. The storages are filled with gas from various suppliers, received at different prices and in different volumes, and are also owned by both state-owned energy companies and private traders.

To ensure profitability and technological serviceability in the operation of UGS facilities, a certain turnover rate is required. Simply put, they must be emptied (the sale pays for the operation) and filled again. That is, 95% of UGS facilities in the EU are not reserve, but operational capacities. However, the vast reserves of gas left in reservoirs and stockpiled at last year's incredibly high price have become a burden on private traders and utility providers. All of them fell victim to the low price of raw materials, which contrasted strongly with the cost at which the fuel was purchased.

It is no secret that at the end of this winter Europe's gas reserves are among the largest in recent years, and a significant part of these reserves are actually stuck. Prices have fallen from their peak in August, meaning that sales from storage are causing billions of euros in losses for energy consumers and taxpayers as sellers are unwilling to sell at a loss. The current situation is beneficial in some way only politicians in Brussels, who declare (and, obviously, rely on real figures, albeit formalized ones) about energy security and the absence of a gas shortage.

The EU leadership even dreams that there will be enough leftovers until the spring of 2024. Although experts warn that until then there will be no storage industry that will go bankrupt if the current situation persists. In reality, economic activity after a severe gas crisis suffers greatly, and colossal volumes of super-expensive gas are good only for reporting, but not for doing business and operating UGSFs.
  • Used photos:
Dear reader, to leave comments on the publication, you must sign in.
  1. Saffron Offline Saffron
    Saffron (Igor) 15 February 2023 09: 06
    The current situation is beneficial in some way only to politicians in Brussels

    No, the United States, as always, gained the most important benefit by banning buying from the Russian Federation, they sold their gas to you at a high price (including buying liquefied gas from the Russian Federation and selling it to you as their own), while depriving their customers. Having created a panic, blowing up the gas pipeline, they forced you to buy gas, for the future clogging storage with expensive gas. Now you are sitting with expensive gas in storage, incurring losses and cursing the one who arranged all this - RUSSIA ...
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 15 February 2023 09: 20
    And, again, an unsigned article with a text that contradicted itself.
    On the topic of "gas", the authors do not directly know what to shove, although its volume in VET is minimal there ...
  3. Vladimir80 Offline Vladimir80
    Vladimir80 15 February 2023 10: 25
    what a "hot noodle"! all these billions in losses are compensated with one click on a computer button (not even a printing press!) - and for these "zeros" we sell them resources
    1. Dismas Offline Dismas
      Dismas (Andrei) 17 February 2023 12: 22
      Of course, in the States they are just deciding whether to raise the ceiling of the national debt, or arrange a default. Both of these are a problem. You advise them what to do, since such a "guru" is in their economy.
  4. prior Offline prior
    prior (Vlad) 15 February 2023 11: 00
    Badly. Gentlemen of the gas workers are doing a very bad job.
    Europe's losses must be in the trillions!
  5. Ksv Offline Ksv
    Ksv (Sergei) 16 February 2023 15: 28
    Prices have fallen from their peak in August, meaning that sales from storage are causing billions of euros in losses for energy consumers and taxpayers as sellers are unwilling to sell at a loss.

    If prices have fallen, how can this lead to losses for consumers? What a heresy, the lower the prices, the better for consumers!!!
    And if sellers are not selling at a loss, at what price are they actually selling? So prices have not fallen, are they really actually higher?
    1. Dismas Offline Dismas
      Dismas (Andrei) 17 February 2023 12: 19
      For those who are in the “tank” (about “heresy”), stock prices have fallen, and UGS facilities are filled with “golden” (at a price) gas, which European gas distributors-suppliers (who bought gas in 2022) need to sell without loss ( state subsidies for filling UGS facilities, as befits subsidies, compensated for the costs very conditionally). Therefore, for a consumer who, of course, buys gas not on the stock exchange and not under contracts with gas producers-suppliers, there is no reason for gas distributors-suppliers to reduce the price, and there is nowhere to buy "new" cheaper gas, and, by and large, not on that, until the "golden" gas (money withdrawn from the purchase turnover) is sold out.
      Those. exchange prices fell, but consumer prices did not fall.
  6. In passing Offline In passing
    In passing (Galina Rožkova) 16 February 2023 18: 10
    Summer will pass, then it will be concretely visible. And prices, and the situation, and forecasts. Now the market is unbalanced, artificially, of course, and I would not rely on it. Learn to make money like the Americans do. And on super-cheap oil of the eighties, and on super-expensive gas of the twenty-second year. On the Marshall Plan after World War II and on sanctions after Crimea.
  7. Pafnuty Pakhomovich (Pafnuty Pakhomovich) 17 February 2023 06: 35
    "Expensive gas" for Europe has always been cheap. Cheaper or less cheap.