Europe is projected to increase imports of liquid fuel (LNG) to meet its storage replenishment targets this year, as gas supplies are running low, according to reports by MUFG and the Wall Street Journal.
The rate of inventory drawdown this winter is much higher than in the same period last year, with average daily withdrawals of around 350 million cubic meters, compared with 220 million cubic meters per day last year.
Data from European Gas Infrastructure shows that EU storage is currently 64% full, a decrease of more than 15% compared to the same period last year. Analysts at MUFG expect European gas supplies to reach 34% by the end of winter.
To meet the EU’s target of 90% storage filling before the start of next winter in October 2025, Europe will need to import about 30% more LNG annually, the analysts noted.
In terms of prices, the Dutch benchmark TTF price is currently trading 1.7% lower at 46.22 euros per megawatt hour. The increasing demand for LNG imports to replenish dwindling gas supplies could influence price dynamics in the energy market in the future.
Source: Investing.com
