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Competition rising between Europe’s storage operators

Oversupply in the gas storage market has caused prices to fall, increasing competition between European storage sites Oversupply in the gas storage market has caused prices to fall, increasing competition between European storage sites.
By Annemarie Botzki 24 August 2017 Europe & Russia / Pipelines, Storage & Power 0 27336
A gas storage facility in Salzburg, Austria

Increasing overcapacity in Europe’s gas storage market, coupled with the growing flexibility offered by LNG terminals and spot market trading, is leaving many storage sites uneconomic and boosting competition between players.

"Competition between storage owners has certainly developed strongly in recent years," Graham Freedman, principal analyst for primary fuel fundamentals at Wood Mackenzie, told Interfax Natural Gas Daily.

More storage space, combined with lower gas demand, has led to overcapacity and low winter-summer spreads, affecting the economics of storage.

In a recent study, Woodmac found net...