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Europe resorts to winter reserve due to lack of gas supply

As of Tuesday, gas reserve deposits were at 52% of their capacity

Europe's energy companies had to draw on gas reserves that they normally use in winter, following gas supply cuts from Russia.

According to Gas Infrastructure Europe (GIE), the recent decrease in the flow from the Nord Stream gas pipeline, which from Germany supplies natural gas to other countries on the continent, has triggered a drop in the storage levels of the operators, similar to the one experienced in April when, in general, they start recharging their facilities, a report from Bloomberg.

"Clearly this shouldn't be happening in [gas] injection season. It will be unsettling for the market," says Warren Patterson, chief commodity strategist at Dutch financial group ING Groep.

On June 14, Gazprom announced that a second Siemens gas turbine was shutting down, because the company had not returned the technical equipment used to pump gas.

The technical equipment, Gazprom detailed in a statement, was being repaired in Canada and was not returned to Russia, due to coercive measures.

To this is added the interruption, due to a fire, in the operation of a Freeport LNG plant in the US, one of the largest operators of liquefied natural gas in the country and which represents another crucial source of European supplies, refers RT news.

Gas reserves depleted for January

Until now, it is known that the gas reserve deposits were at 52% of their capacity, remaining close to the average level in the last five years.

However – details Arun Toora, an analyst at Bloomberg -, the challenge will be in evaluating the impact of the “slowdown in storage injections”.

The Russian company asserted that, to date, it is not known what will happen to Nord Stream, however; he noted that they could use spare pipeline capacity to supply European customers.

This, without counting on the event of a hypothetical total shutdown of the supply of the Nord Stream 2 gas pipeline.

If this happens, Bloomber points out, the European Union's reserves would be depleted in January.

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