Le gas stocks will they be enough for 2023? It seems so, as at 31 December 2022 gas stocks in Italy stood at 84% against 68% in 2021. The positive result was communicated by Snam which, through its subsidiary Stogit, is the largest storage operator in Italy and one of the main ones in Europe: at the end of 2022 in the storage of the subsidiary Stogit amount to 9,3 billion cubic meters, to which must be added the 4,5 billion cubic meters of strategic storage. Approximately 2,6 billion more than the 6,7 billion cubic meter stock recorded at the end of December 2021. 70% of the gas volume is located at the sites of the Po Valley while the remaining 30% in the Abruzzo field of Treste river (ch).
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Gas: what is storage and why is it important?
Storage plays a particularly important role since it makes it possible to compensate for the differences between gas supply and demand and therefore to guarantee continuity of supply. In the summer period, when demand is lower, the gas is stored in depleted fields, while during the winter it is extracted and fed into the network to satisfy the greater demand from end consumers. But why could gas stocks not be enough for 2023?
Since the war in Ukraine started, the energy crisis it has intensified to the point of realizing the risk of not having enough gas to face the winter and in general to satisfy the demand for energy. Almost half of gas imports came from Russia, which in recent months has significantly reduced its supplies in retaliation against Western sanctions. The European Union has worked hard to replace the Russian methane, in order to reduce its energy dependence on the invading country. There were results, but in a few months it was not possible to replace it completely. For this reason, storage has played a key role. It was feared that the gas would not be enough, but the higher temperatures of the media and consumption reduction plans have made it possible to optimize the management of flows.
In particular, the note points out that on the basis of the preliminary final data for the month of last December gas consumption in the fourth quarter of 2022 it amounted to approximately 16,9 billion cubic meters, with a saving of 5,6 billion cubic meters compared to the 22,5 billion in the corresponding quarter of 2021. This result can also be attributed to lower industrial demand and the transition of some utilities to alternative fuels to natural gas.
Snam's initiatives
A new service was launched at the beginning of last November reverse storagewhich envisages the offer to users of an injection capacity of up to 600 million cubic meters in the November-December period, with delivery to be carried out in the January-March 2023 quarter. A service particularly appreciated by operators and assigned for all volumes.
Considering the persistence of tension on the energy markets, the uncertainties linked to the climate and the potential risks of supply interruptions, at the beginning of December Snam offered other services, with the aim of preserving as far as possible the quantities present in the Stogit storage system and with a view to facilitating the next injection campaign, which however will have to pay for the lack of supplies from Russia.
Firstly, a storage service was offered to users for the thermal year 2023-24 up to the amount of 500 million cubic metres, which has been fully allocated.
The counterflow initiative was then replicated e extended for the month of January 2023 for another 500 million cubic metres. These volumes have been associated with capacity bookings and related withdrawal services for the coming winter November 2023-March 2024, which will thus be able to count on a broader starting point in the injection phase.
At the end of November, the regulator approved the proposal modification of the storage code Stogit by expanding the offer of capacity products, with particular reference to intraday products, an initiative which has made it possible to complete the offer of short-term services by the Snam subsidiary and which has allowed shippers further flexibility to optimize management of their gas volumes.
Finally, last December 29, the Mase communicated its assent to the reactivation of the service last resort filling, as occurred pursuant to the MiTE decree of 22 June n. 253: a further measure that will make it possible to bring forward the cycle of reinjection of stocks for next summer.
Will gas stocks be enough for 2023?
Barring unforeseeable events, the winter season could close at the end of March 2023 with at least 3 billion cubic meters of residual gas in storage, against the 0,69 billion cubic meters recorded the previous year. A quantity that will facilitate the subsequent summer filling process.
Furthermore, on 18 December last Snam sold the gas already injected in recent months under the competitive procedure pursuant to the aforementioned ministerial decree, awarding all 40 lots offered, equal to 816 million cubic meters, against requests for 65 lots . Also in this case 30 of the 40 lots assigned will be disbursed in the next one thermal season 2023-24.
Finally, it should be noted that i minor releases from the storage system registered in the period November-December 2022 will have an additional positive effect, because under conditions of maximized use of the entire system - an eventuality that cannot be excluded in cases of intense cold or other emergencies - they will allow a higher gas delivery performance than the tip.
