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Denmark’s gas stocks at full capacity as price drops

The Local Denmark
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Denmark’s gas stocks at full capacity as price drops
Denmark's gas storage facility at Lille Torup near Viborg. Photo: Bo Amstrup/Ritzau Scanpix

A drop in the price of gas is related to high current stocks in Denmark and other parts of Europe.

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Denmark’s gas stocks are currently at capacity, national company Energinet and interest organisation Green Power Denmark told news wire Ritzau.

High storage levels in Europe are related to current low spot prices, but the stores alone are not enough to see Denmark through the entire winter.

The spot price of a commodity is the price at which it is traded for immediate delivery.

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“Right now, the Danish gas stores are full to the brim with gas,” Green Power Denmark senior consultant Kristian Rune Poulsen told Ritzau.

“This means we are well stocked when we go into the winter. We can simply not get any more gas into storage than we have at the moment,” he said.

That means there are currently enough supplies to last Denmark two to three months according to the analyst.

As such, Denmark still needs to produce biogas and import some gas to have enough for the winter months.

European data shows comparable situations in bigger EU countries like Germany and France, and the spot price of gas is now at its lowest level for the last year.

Western Europe countries maximised gas storage during the summer to guard against a cold winter and high demand.

But milder current weather, strong winds giving high turbine electricity production and high levels of liquefied natural gas (LNG) supply to Europe means the stored gas could last longer than previously expected.

READ ALSO: At what time of the day is electricity cheapest in Denmark?

Poulsen told Ritzau that Europe is still receiving large quantities of gas and that he did not think a gas shortage this winter was likely.

Other countries in Europe have similarly full stocks, pushing down the spot price.

“That the Danish – and actually, many other European gas storages – are full or almost full has made the spot price of gas dive quite considerably,” he said.

“The price of gas for delivery here and now is at the lowest level we have seen for over a year,” he said.

Denmark’s two gas storage facilities are operated by Gas Storage Denmark, which is owned by state company Energinet.

READ ALSO: EXPLAINED: When should I turn on my heating in Denmark this year?

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