Operator Taqa will offer 2.5TWh of gas storage space at the Dutch Bergermeer facility for the remainder of this storage year on 13 October, after the economy ministry yesterday granted a permit for more capacity to be used at the site.
Marketing the additional space will lift the "total maximum storage capacity" for this storage year to 48.1TWh from 45.6TWh, Taqa said.
The offered space will only represent a small part of the additional capacity that could theoretically be made available following the ministry's decision. The increase in the maximum gas pressure at the site would allow for a rise in maximum storage capacity by around 30pc, Taqa said. Capacity could consequently increase to about 59TWh.
Taqa already said earlier this week that "there is a very real possibility" that it "will not market up to the full capacity". The 30pc increase in working gas capacity "is a theoretical maximum assumption and strongly depends on the economic circumstances, possibilities for transport through the grid, the market, contractual conditions and the technical capacity of the installation", the firm said.
More space may be marketed in subsequent storage years.
The auction for the additional 2.5TWh will take place at 11:00-13:00 CET on 13 October, and the capacity will be available from 16 October until the end of March 2021. The space will be offered without injection or withdrawal capacity, and bids will have to be submitted on a fixed-price basis.
The TTF October market has held far below contracts for delivery later in the winter, although differentials have narrowed in recent weeks. Spreads still holding wide by mid-October could encourage strong uptake at the auction.
Much of Europe may have little or no injection demand left by then as stocks have closed in on maximum capacity. And some additional space becoming available at Bergermeer could provide an outlet for supply in the second half of October or even into November, especially if a mild start to the winter curbs demand.
