European gas stockpiles are set to cost countries 10 times the usual amount for winter storage amid Russia's energy cutoff
- European nations will have to pay $51 billion, or 10 times the usual amount, to fill up winter gas stockpiles this year, per Reuters.
- Countries remain on track to reach a gas storage filling target amid the continent's energy crunch.
European nations are set to pay $51 billion to fill up winter gas stockpiles this year, or about 10 times the historical average, according to a Reuters report.
Even amid the energy crunch and Russia's ongoing gas shut-offs, European gas storage is at 70% capacity, beating the five-year average for this time of year thanks to high prices and declining demand.
But even as gas reserves are built up, uncertainty remains as to whether Russia will impose further supply cuts to Germany via the Nord Stream 1 pipeline.
Countries have ramped up imports of liquefied natural gas from elsewhere including the US — which is now sending more gas by boat to Europe than Russia is by pipeline — thanks to reduced flows from Russia. This week, Russia's Gazprom stopped natural gas exports to Latvia, pushing European gas prices higher.
Additionally, the EU has called for lower energy consumption, as well as increasing the use of sources like coal and oil.
For years, Europe has moved away from burning fossil fuels as part of climate initiatives, but nations have been forced to change course in recent months in response to Russia's natural gas halts.
In Munich, for example, a local utility company revived two major oil-fired plants this week, according to a Bloomberg report. Deutsche Bank warned in July that Germans could switch to wood this winter to heat their homes.
The European Union is aiming to refill gas to 80% storage capacity by November 1 in preparation of peak demand during winter, and the most recent numbers show the goal remains in sight.
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