Equinor CEO: Europe unlikely to reach 80% gas storage target
- Storage levels below five-year average
- Asian buyers draw LNG cargoes from Europe
- Europe will be more exposed to price swings
The CEO of Europe's largest supplier of natural gas expects the region to fall short of its goal to fill gas storage sites to 80% of capacity before the winter, hampered by market tightness that has increased competition from buyers in Asia.
Gas volumes at European storage sites are significantly lower than the five-year average and at their second-lowest level in 15 years, Equinor chief Anders Opedal said on Wednesday after the company reported its highest quarterly profit since early 2023.
"We do not think that Europe will necessarily be able to fill up its stocks to more than 80% this autumn," Opedal said.
As a result of lower gas storage levels, which currently stand at 54%, Europe will be more exposed to market price swings this winter than in previous winters, he added.
The U.S.-Iran war has effectively halted shipping through the Strait of Hormuz, including about a fifth of the world's liquefied natural gas, typically delivered to Asian customers.
Europe, meanwhile, has been unable to call on Russian pipeline gas as those supplies are phased out because of the war in Ukraine.
Equinor says that Europe relies on LNG to meet about 30% of its import needs, but supply is now missing.
"The gas that was supposed to come from Qatar was supposed to go to Asia, and that means that LNG that earlier in the year came into Europe is now going to Asia," Opedal said, referring to the increased competition for global supplies.
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