Norway Wins Gas Race Against USA; Europe's Problem May Be Price, Not Shortage

Norway has emerged as the European Union's primary supplier of natural gas, overtaking the United States, a European Commission spokesperson confirmed. This development comes as the EU intensifies efforts to secure energy supplies for the upcoming winter heating season.

Eva Hrcinova, a Commission representative, stated that the bloc is actively working to fill its gas storage facilities. Although the pace of filling is slightly slower than in previous years, overall progress is deemed satisfactory, with storage levels currently approaching 62% capacity. The Commission expressed confidence that there are no immediate reasons for concern regarding supply availability.

Poland leads EU member states in storage capacity utilization, exceeding 89%. However, this volume would only cover about 13% of the country's annual demand due to relatively small storage facilities. Poland benefits from the Baltic Pipe pipeline, which delivers Norwegian gas directly.

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The pace is somewhat slower than in previous years, but in reality, everything is going well and today we are very close to 62%.

Austria boasts significant storage capacity relative to its needs, with its facilities filled to 64%, covering 83% of its annual demand. Latvia, despite having only 11% of its storage capacity filled, has secured 118% of its national demand, utilizing its large storage facilities to supply neighboring Baltic states as well.

While the EU is making progress in filling storage, the primary challenge remains the price of gas. September futures contracts on the Dutch TTF hub saw a slight increase, reaching 63.65 euros per megawatt-hour. This price volatility is partly attributed to ongoing geopolitical tensions and conflicts in the Middle East, which continue to influence market sentiment and energy costs across Europe.

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We are not aiming for full gas storage. We usually fill them only to 80%, which means we are not far from the target level. And, as I mentioned, we are close to 62%.