Europe starts ramping up gas storage volumes

Europe is now placing natural gas in storage following the end of the winter heating season, ahead of stringent EU refill targets over the summers that member states are pushing to make more flexible to avoid high costs.
Some 250mn cubic metres of gas was injected into storage on April 5, while only 34 mcm was withdrawn, according to Gas Infrastructure Europe. On April 6, a further 195 mcm was injected and 67 mcm withdrawn. Storage facilities have now been filled to 35% of capacity.
This is about 10.5 percentage points lower than the five-year average for the date. Europe withdrew significantly more gas in the early months of 2025 versus previous years, because of colder temperatures, low wind speeds and the end of Russian gas transit through Ukraine on January 1.
This has also driven up gas prices. Fortunately, though, gas prices fell below $400 per 1,000 cubic metres on April 7 for the first time since last September, lowering refill costs. This is the result of warmer temperatures and concerns about the economic implications of a global trade war, following the Trump administration’s introduction of mass tariffs.
In a typical year, European gas prices drop during the summer months because of a lull in demand, and this provides an economic incentive for companies to buy gas for placement in storage for withdrawal in winter, when prices are higher.
This is not the case this year, however, with gas priced at roughly the same level as now throughout summer and winter. This is because of EU storage targets, set across the summer with the ultimate goal of each member state filling their facilities to 90% of capacity by November 1.
While this well-intentioned policy was introduced in 2022 to help avoid winter gas shortages following Russia’s significant cuts in pipeline supply, it is fuelling bullish price sentiment this summer. Sources in the gas industry have complained to NewsBase that the policy gives an undue advantage to gas sellers, as they know when and how much gas buyers need to purchase for storage.
Member states have been pushing for the storage targets to be relaxed for several months, but Brussels is yet to make any changes to the regulation. Changes could be made to the November 1 target if new rules are finalised and published before that date, Reuters reported on April 4, citing diplomatic sources.
EU countries are set to agree a joint position on the issue next week, after which they will enter negotiations with the European Parliament to finalise the law.
According to Reuters, member states want to be able to miss the 90% by November 1 target by up to five percentage points if this can be justified by “unfavourable” market conditions. But some, including Germany, which boasts the largest gas storage capacity in Europe, want a bigger allowance of 10 percentage points.
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