Energy companies are turning to Ukraine to store gas as the EU’s stores of natural gas are nearing full capacity. With the peak demand of the winter months approaching, energy companies are parking excess reserves in Ukraine, which has emerged as an alternative storage option. Ukraine has a vast network of underground gas storage facilities, and its storage capacity is expected to reach 31.5 billion cubic metres by the end of 2023. The country’s storage capacity is expected to increase by 20% over the next two years.
The EU’s gas storage capacity is expected to reach 100 billion cubic metres by the end of 2023, with an expected increase of 10% over the next two years. However, the EU’s gas storage capacity is expected to reach 140 billion cubic metres by 2030, with an expected increase of 40% over the next decade. Despite these increases, the EU’s gas storage capacity is expected to be insufficient to meet demand in the event of a cold winter.
According to the Financial Times, energy companies are increasingly storing natural gas in Ukraine to hedge against supply risks ahead of peak winter demand as the bloc’s inventories near full capacity. To increase capacity, some companies are also hiring LNG tankers to serve as “floating storage” offshore.
CEO
