European gas storages are also important for Finnish electricity consumers.
The gas reserves of the countries of the European Union are record full.
This is clear from the data compiled by Gas Infrastructure Europe (GIE), which represents the gas industry. According to the organization, Europe’s gas storages were approximately 57 percent full the other day. At the beginning of April, the occupancy rate was also over 55 percent, which was the highest level at the time since at least 2011.
The filling level of European gas storages has been closely monitored since the start of the Russian war of aggression. European gas storages are also important for Finnish electricity consumers. If gas reserves run out and the price of natural gas starts to rise, it will quickly be reflected in electricity prices in Finland as well.
In the autumn and winter crisis months, the fear was that the gas reserves would be depleted so badly during the past winter that it would be difficult to fill them for the next winter without Russian gas. Now this worry has at least partially dissipated.
– Without a doubt, this is good news, says the gas market expert of the industry’s interest organization Energiateollisuus ry Heikki Lindfors.
– It says that the EU has found ways to manage without Russian gas, which has calmed the situation in the energy market, industry and households.
According to Lindfors, it is difficult to estimate how big a role the filling rate of natural gas storages will play in the future when talking about the price of electricity in Finland. It will probably be smaller than before, he says. Olkiluoto komlonen has improved the self-sufficiency of electricity production and reduces the need to import electricity.
The goal is a 90 percent level before the beginning of November
According to Lindfors, the favorable situation of gas storages is mainly explained by two things. The winter that ended was milder than expected, and therefore the stored gas did not need to be used as much as expected. Secondly, EU countries have succeeded in significantly reducing natural gas consumption.
Although the level of natural gas reserves is good for the time of year, it still needs to be increased drastically before winter. In the EU, a regulation was hastily enacted last year, which obliges member countries to fill their gas reserves to 90 percent by the beginning of November.
According to Lindfors, it is still too early to predict whether the warehouses will be filled before the target time. In the past, Europe was dependent on Russian natural gas, but now it is dependent on the global market for liquefied natural gas, or LNG.
– That’s why the big question is how cold the winter is going to be not only in Europe, but also in Asia and in different parts of the world. This affects the demand for natural gas and thus its price.
There is still uncertainty about next winter’s energy situation as well. However, according to Lindfors, it is small compared to the situation a year ago, when there was downright panic in the market about how Europe would manage without Russian gas.
– The outlook for next winter is now much clearer and the starting situation is good, says Lindfors.
The subject can be discussed until Thursday, April 20, until 11 p.m.
Listen to the World Politics Everyday program, which discusses Russian gas extortion. The program is from January.