Europe’s Gas Storage Compared to Historical Consumption

In the wake of the energy crisis, Europe has been rushing to cut ties with Russian gas.

In 2021, Russia accounted for around 45% of the EU’s gas imports. As of August 2022, that figure was around 17%.

However, reducing reliance on Russian gas after years of dependence has put Europe in a precarious situation ahead of winter. To reduce the possibility of an energy crunch in the heating season, the EU bloc set a target to fill 80% of its underground gas storage by November 1.

This infographic puts Europe’s current gas storage levels in perspective by comparing them with annual gas consumption in 2021, based on data from Gas Infrastructure Europe as of November 28, 2022.

Heat For the Winter

As winter approaches, many European countries have near-full gas storage levels, with the overall EU gas storage 94% full. But comparing storage with annual consumption paints a different picture.

*Ukraine and UK are non-EU countries. Nine EU countries that are not on the list do not have any gas storage sites.

Ukraine has the largest storage capacity, and while it’s only 30% full, it represents nearly 40% of the country’s annual gas consumption. However, Russia’s continuing attacks on Ukraine’s energy infrastructure may squeeze supplies as temperatures drop.

The Nations at Risk of Running Low on Gas

Germany, Europe’s biggest economy and largest importer of Russian gas, has almost completely filled its gas storage. Despite this, storage supplies only amount to 27% of annual German gas consumption. Given that half of all German households use natural gas for heating, these stocks are especially important as winter peaks.

While storage facilities in countries like Poland, Spain, and Belgium are over 90% full, they represent only a fraction of annual gas consumption at 15%, 10%, and 5% respectively. Meanwhile, countries like Austria and Latvia have stored more gas than they consume in an entire year.

The UK’s gas storage is full but makes up just 1% of its annual consumption. The majority of UK homes rely on gas for heating, and it also accounts for 30% of electricity generation. A gas crunch could lead to both higher heating and electricity prices for UK residents.

What’s Next for Europe’s Gas Crisis?

This year, warmer-than-normal temperatures and efforts to reduce gas consumption have both played important roles in controlling Europe’s energy crisis before winter sets in.

However, the region’s reliance on Russia was decades in the making, and replacing it won’t be easy. EU countries’ gas storage sites are likely to be depleted by the spring of 2023. Without pipeline gas from Russia, Europe will have limited import capacity, and filling gas storage sites for next winter could be challenging.

Europe is undertaking a number of initiatives to combat the crisis. Countries in the region (including the UK) have pledged over $700 billion to reduce energy costs for households and to meet the liquidity needs of power companies. This, along with lower consumer demand due to high gas prices, will help lessen the impacts of the crisis in the short term.

However, looking ahead to 2023 and 2024, if gas prices remain high, industrial production is likely to fall as producers cut costs. Combined with low consumer confidence and high inflation, a fall in industrial output will likely exacerbate a potential recession, should things unfold that way.