Best Updates Europe’s Gas Storage Facilities Are Nearly Full. But There Is One Catch
Europe's Gas Storage Facilities Are Nearly Full. But There Is One Catch
Europe’s Gas Storage Facilities Are Nearly Full. But There Is One Catch
Bloomberg: European states cannot dispose of accumulated gas
Although Europe managed to fill up gas storage for the winter, countries have little to no control over these reserves, according to Bloomberg. 90% of the fuel is owned by corporations who have every right to sell it to the highest bidder.
—Up to 90% of the gas from storage will be received by the one who offers the highest price.
—The system of cross-border gas transportation was not tested in crisis conditions.
Europe has made great efforts to fill its gas storage facilities for the winter. But the unfortunate truth is that governments have little control over these reserves.
According to data obtained by Bloomberg, only 10% of the gas from the storages of the national strategic reserve is under the direct control of government officials from Italy to the Netherlands.
The rest of the gas is owned by international trading companies, utilities and industrial corporations. These companies have every right to sell gas to the highest bidder, even if it is a buyer from another country. This means that if a cold snap occurs in Germany, it will start buying gas from its neighbors, and this will deal a blow to European solidarity.
The regional gas network must operate in such a way that deliveries are made between markets. As long as there is enough gas in the system, it remains in balance. But in a similar crisis situation, she has not yet worked.
“In practice, this system has never been really tested,” said analyst Graham Freedman of consulting firm Wood Mackenzie. “A lot will depend on the weather this winter.”
If it’s cold, stocks will be less than 10% by the end of March, Friedman said. Because of this, the fight for gas will start again in order to stock up for next winter. Europe does not have open data on who owns the gas in storage, but most of it is controlled by energy companies, including state-owned ones. And they will have to take this fuel to supply private homes and industrial enterprises, informed sources said.
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