Injections into EU gas storage facilities quickened in the first half of May from the second half of April, remaining above the previous two years' pace.
Net injections across the EU averaged 3.42 TWh/d on 1-15 May, up from 2.7 TWh/d in the previous two weeks and 2.82 TWh/d over the same period of 2024, the most recent data from EU transparency body GIE show (see injections graph). The stockbuild was also slightly higher than on 1-15 May 2023, although below the 3.74 TWh/d average in 2018-22.
The EU needs a strong stockbuild this summer to close the gap to the two-year average, as storage facilities entered this summer at a much lower base of 388TWh in store, or just 34pc of overall technical capacity. Stocks have since increased to 497TWh as of the morning of 16 May, but this remains 238TWh lower than the 16 May average in 2023-24, although much closer to the 2018-22 average of 503TWh (see stocks graph).
The German government's recent decree lowering the country's storage target to 70pc by 1 November from 90pc previously reduces required injections in the EU's biggest storage market, although operator Sefe's continued failure to market significant capacity at Rehden may require a strong stockbuild late in the season. And European legislators' push to drop the EU-wide target to 83pc and to essentially abolish intermediary fill targets further decreases the pressure to inject immediately, but could lead to some firms taking a wait-and-see approach while the legislation is finalised.
Prompt prices across major European hubs have dropped to significant discounts to the front-winter price so far this month, incentivising injections. The TTF day-ahead price averaged €34.32/MWh on 1-15 May and the balance-of-month €34.37/MWh, each well below the average for the winter 2025-26 contract of €35.92/MWh. An even larger gap opened up in Germany, with the day-ahead on average €2.32/MWh below the winter and the balance-of-month €2.25/MWh beneath it.
Sendout from EU LNG terminals remained strong at 4.3 TWh/d on 1-15 May, slightly down from 4.4 TWh/d in the second half of April but well above 3 TWh/d over the same period of 2024. Chinese LNG demand has continued to hold much weaker on the year after a mild winter that left stocks high, along with booming domestic production and stronger pipeline imports from Russia. This has meant that Europe has faced less competition for marginal cargoes.
Additionally, a slight drop in gas demand for power generation has left more gas available to add to storage than a year earlier. The EU's gas-fired power generation slipped to 23.1GW on 1-15 May from 23.7GW a year earlier, according to data from Fraunhofer ISE.
