Insight
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9 Pages

European gas storage operators under pressure


European gas storage operators under pressure

Report summary

The market value of gas storage is to a large extent determined by the summer-winter spread of gas prices.  In recent years these spreads have fallen to levels where some storage operators/owners are struggling to cover their annual operating costs.  This has contributed to 8 bcm of capacity being closed or mothballed in Europe since 2010, despite overall capacity in the region growing by 18 bcm.

Wood Mackenzie has carried out some sensitivity analysis, reducing storage capacity by 25% in north west Europe to see what the impact on price spreads might be.  We have also assessed what the price impact of a particularly cold winter might be under these conditions.

What's included?

This report includes 2 file(s)

  • European gas storage operators under pressure PDF - 447.87 KB 9 Pages, 3 Tables, 5 Figures
  • Storage data.xlsx XLSX - 1.01 MB

Description

This Gas Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

We provide detailed supply, demand and price forecasts based on our integrated upstream, power, coal and LNG research. Our regional gas experts are based in the markets they analyse, providing comprehensive analyses of regional and global gas markets.

If you want to understand complex gas market dynamics and plan for the future, Wood Mackenzie is the premier resource to help you gain a clear, competitive advantage.

  • Executive summary
    • The European storage landscape
      • Table 2: Individual Country Storage Cover 2017
    • The use of storage in today's gas market
    • Can the market sustain current storage capacity?
    • Gas storage in an over-supplied European market
    • Conclusions

In this report there are 8 tables or charts, including:

  • Executive summary
    • European gas storage operators under pressure: Table 1
    • Figure 1: Storage Cover in the EU 2010-2017
    • European gas storage operators under pressure: Table 2
    • Table 3: Gas storage closures in Europe
    • Figure 2: Continental EU Storage Use 2016/2017
    • Figure 3: TTF Summer-winter spreads vs storage tariffs
    • Figure 4: Gas Storage as guarantor of supply security/The role of storage
    • Figure 5: Summer-winter spreads forecast with 25% northwest European storage capacity reduction
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