Europe steps up natural gas injections to meet growing demand

Europe is stepping up natural gas injections in anticipation of strong summer demand, boosting LNG imports to avoid shortages, according to analysts at S&P Global Commodity Insights.

Share:

Europe Prépare Stocks de Gaz pour Été

With the arrival of summer, Europe is gearing up for a significant increase in energy demand due to the forecast of higher temperatures. Traders and analysts at S&P Global Commodity Insights report that natural gas injections started earlier this year, with reserves already at 62.32% of capacity at the end of April, a record start for several years.

Injection rates and historical comparisons

Historically, the month of May is a key period for increasing gas injections. Indeed, between 2020 and 2023, injection rates in April averaged around 0.16% per day, while in May they almost doubled to around 0.32% per day. These rates should remain high until the end of the summer, with June, July, August and September showing rates of around 0.23%, 0.28%, 0.28% and 0.18%, respectively.

Anticipated strategies for May injections

David Lewis, LNG analyst at S&P Global, suggests that injections in May will be particularly aggressive, following the significant withdrawals in April. However, despite withdrawals, EU stocks ended April with 4.5 billion cubic meters (Bcm) more gas than the previous year. This situation strengthens Europe’s ability to cope with increased demand during the summer months.

Norwegian weather conditions and flows

Cooler weather in Asia in May could redirect some LNG cargoes originally destined for Europe. However, a recent increase in prices at the TTF (Title Transfer Facility) hub in Europe has made the continent more attractive for LNG cargoes. The performance of Norway, a key supplier, is also decisive. If Norway maintains robust flows, Europe will be able to continue its injections and fill its reserves rapidly. However, unforeseen maintenance could increase prices and discourage injections during May.

Reactions to market conditions

Despite high inventories, market players are anticipating a bullish second quarter due to impending risks. Europe has already reached its target of filling gas stocks to 90% for the year, well ahead of the November 1 deadline set by the EU, positioning the market to meet requirements well into the winter.

Expectations for the injection season

Market sources predict that injections will intensify as temperatures rise, reducing the need for heating withdrawals. Although there is demand for gas for cooling in Europe, particularly in the Mediterranean, it does not rival demand for heating. S&P Global analysts predict that emerging bullish trends could help keep prices sustained throughout the summer.

Europe’s preparations for increased energy demand this summer involve proactive management of LNG stocks and adaptive injection strategies. As the continent heads into a potentially volatile summer, decisions taken now will have a significant impact on Europe’s energy stability in the months ahead.

Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.