Insight
European gas storage operators under pressure
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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.
Table of contents
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Executive summary
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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
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The European storage landscape
Tables and charts
This report includes the following images and tables:
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European gas storage operators under pressure: Table 1Figure 1: Storage Cover in the EU 2010-2017Figure 2: Continental EU Storage Use 2016/2017
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Figure 3: TTF Summer-winter spreads vs storage tariffsFigure 4: Gas Storage as guarantor of supply security/The role of storageFigure 5: Summer-winter spreads forecast with 25% northwest European storage capacity reductionEuropean gas storage operators under pressure: Table 2Table 3: Gas storage closures in Europe
What's included
This report contains:
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