Expert: No Reason for Panic Over Europe's Gas Reserves for Now
Estonian energy expert Igor Krupenski says falling gas storage levels in Europe are no cause for panic. Still, Estonian residents may face higher heating and electricity costs this winter.
The decline in gas reserves in European storage facilities is not a reason to panic, but Estonian residents may face higher heating and electricity bills this winter. This was said by Igor Krupenski, a doctor of science in energy, on the "Kohv+" programme of Estonian public broadcaster channel ETV+.
Why reserves are lower
According to the expert, European Union gas storage sites were 71% full at the end of September. One reason is commercial risk: private companies did not buy large volumes of gas in summer because they could not be sure they could sell it at a profit in winter.
European buyers are also now competing with buyers in Asia for liquefied natural gas. Until 2022, about 45% of Europe's gas came from Russia; now it is supplied from various countries around the world.
Krupenski nevertheless noted that a low storage level does not in itself mean a threat of supply disruption. Europe also has liquefied gas receiving terminals and receives gas through pipelines.
Estonia's reserves and bills
Estonia has strategic reserves. The state stockpiling centre Eesti Varude Keskus keeps around 90–100 million cubic metres of gas at Inčukalns in Latvia, roughly a third of the country's annual consumption.
Higher gas prices may affect bills for those who heat with gas and buy it at the exchange price. Consumers with long-term contracts are protected from market swings in the short term.
The expert assessed the impact of expensive gas on Tallinn's district heating as limited, since the capital has substantially reduced its dependence on gas over recent decades. Consumption is expected to fall further once the company Utilitas launches a 110-megawatt heat pump in Pohja-Tallinn by the end of the year, which will use heat from wastewater.
Gas prices can also affect electricity costs in Estonia, even though the country does not generate electricity from gas. The exchange price is set by the most expensive source needed to cover demand. In windless, cold weather, gas power plants in Latvia and Lithuania may be switched on, which can raise the exchange price in Estonia too.
Advice for consumers
The European Commission recommends that countries cut gas consumption to reduce the risk of shortages. In the expert's view, consumers themselves can take some of the necessary steps: lowering the temperature in a gas-heated building by just one degree can cut gas use by about 5%. When replacing an old gas boiler, he advised considering alternatives such as a heat pump.
