French gas storage withdrawals slow

OREANDA-NEWS. French storage withdrawals slowed last week as demand fell, but stocks are on course to be lower than in most recent years by the end of the winter.

The stockdraw fell to 839 GWh/d from 986 GWh/d a week earlier as milder weather curbed demand. Aggregate consumption slipped to 2.15 TWh/d from 2.22 TWh/d.

Withdrawals were below the five-year February average of 892 GWh/d for the first time this month. But a strong call on storage earlier this winter has left stocks on course to be low by the start of the summer. If last week's withdrawals continued to the end of February and then slowed next month to the five-year March average of 333 GWh/d, stocks would stand at about 26TWh on 1 April. This would be lower than four out of the past five years and below the five-year average of 29.02TWh. Inventories were last lower at 14.58TWh in 2013 following a persistently cold first quarter.

Stocks stood at 39.59TWh yesterday morning, down from 46.21TWh a year earlier.

Oil-indexed import costs are expected to be higher in the first quarter than later in the year. This has offered an incentive for importers to minimise their crude-linked receipts in January-March and draw heavily on stocks.

Low imports at Obergailbach throughout this winter have also driven the strong stockdraw. Russian deliveries to the Ukraine-Slovakia border have dropped compared with previous years, resulting in lower flows downstream into the Megal system and on to France at Obergailbach. Reverse flows to Ukraine via Slovakia have led to gas being backhauled at Baumgarten and in the Czech Republic, further curbing deliveries into Megal and to France.

French imports were broadly unchanged at 1.28 TWh/d compared with last week as higher imports through Taisnieres H and slower exports to Italy offset lower Obergailbach receipts and a drop in LNG sendout.