Patrick Pouyanne, CEO of Total, during his press conference held on November 2, analyzed the gas storage situation in Europe and announced that countries on the continent will have to pay higher costs to secure sufficient energy for the upcoming winter. He emphasized the need for a review of gas storage policies.
Challenges of Gas Storage in Winter 2023
Pouyanne, referring to Europe's past mistakes in storage, said: "In 2026, the storage requirements were adjusted a year earlier than scheduled, which led to reduced storage and increased pressure on energy resources." He noted that inadequate preparedness for winter, especially under current market conditions, poses serious challenges for Europe.
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Following recent tensions from the U.S. and Israeli regime's war against Iran and its impact on liquefied natural gas (LNG) exports from Qatar, Europe is facing new challenges in gas supply. This has led to competition between Europe and Asia for purchasing LNG shipments and filling storage tanks before winter.
Gas Storage Situation in Germany
According to data from the "European Gas Infrastructure Association," gas storage facilities in Germany, which are among the largest in Europe, are at their lowest level ahead of winter. Specifically, the storage level in this country reached 61.03% on November 1, significantly lower than the EU average of 74.62%. This situation indicates an urgent need for gas resource procurement and a review of storage policies.
Pouyanne also pointed to rising gas prices in European markets, adding: "We are paying more than other consumers." The benchmark natural gas price in European markets surpassed 100 euros for the first time since the energy crisis of 2022 on October 28, indicating increasing pressure on the energy market.
The CEO of Total concluded by emphasizing that a proper assessment and monitoring of economic efficiency are essential under these conditions to free the European gas market from existing problems and achieve sustainable energy supply.
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