MOSCOW, August 12. /TASS/. The rapid decline in gas reserves in Europe’s underground storage facilities has triggered concerns within the EU about a harsh winter; the continued closure of the Strait of Hormuz until 2029 would potentially benefit the US and Russia; and gold is losing its stability amid geopolitical developments and decisions by global central banks. These stories topped Wednesday’s newspaper headlines across Russia.
Izvestia: EU preparing for winter with critically low fuel reserves
Gas reserves in Europe’s underground storage facilities are rapidly falling. According to the August 10 data from Gas Infrastructure Europe, the facilities are only 59.1% full, which is 12.4% below the level a year earlier. Disruptions in LNG supplies through the Strait of Hormuz and increased electricity consumption due to an abnormal heat wave are contributing to the situation.
Disruptions to LNG supplies through the Strait of Hormuz remain the primary reason for the slow pace of gas injection into storage facilities. Under normal conditions, about 20% of the world’s LNG supply passes through the strait. Therefore, the disruption in supplies has significantly tightened the global market balance, Ivan Timonin, a senior manager at the Implementa consulting firm, told Izvestia. The situation was further aggravated by the abnormal heat wave that swept across Europe this summer.
