EU Gas Storage Near Full as Bloc Prepares for Winter

A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov
A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov
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EU Gas Storage Near Full as Bloc Prepares for Winter

A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov
A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov

European Union countries have nearly filled their gas storage as the bloc readies for winter and the potential stoppage of Russian gas deliveries via Ukraine, data showed on Wednesday.

Gas storage facilities across the 27-country EU are 90% full, marking the second year running in which the bloc has hit its 90% filling target in August - well in advance of a November deadline, the European Commission said.

Germany, which has the biggest storage caverns of any EU country, has filled them to 93% of capacity. Most EU members with storage sites have filled them to above 90%, data from Gas Infrastructure Europe showed.

According to Reuters, Russia used to supply around 40% of the EU's gas before the 2022 Ukraine war, after which Russian deliveries plunged and Europe raced to replace reliance on Moscow with more gas from countries including Norway and the US.

Europe faces a potential further loss of Russian gas this winter, as a transit agreement to deliver Russian gas to Europe via Ukraine is due to expire at the end of the year.

The EU has said it will not pressure Ukraine to extend this agreement, and has said countries can do without these deliveries, which totalled around 15 billion cubic metres (bcm) in 2023, out of total EU gas consumption of 295 bcm.

Europe's last winter was usually mild and had low energy demand, which left storage relatively full earlier this year, reducing the task of refilling depleted caverns during summer. Stored gas is called on during Europe's coldest months when demand for heating peaks.

"It's a combination of a very significantly higher starting point of storage and lower demand," Jacob Mandel, senior associate at Aurora Energy Research, said of current storage levels.

The GIE data showed a very different situation in Ukraine, where gas storage is just 23% full.

Mandel said the risks caused by the war and the high cost for Ukrainian companies to import gas have curbed the country's ability to build up storage reserves.

Ukrainian energy facilities have also come under nearly daily bombardment in recent months, causing blackouts, as the war grinds on following Russia's full-scale invasion in February 2022.

EU Energy Commissioner Kadri Simson called on Wednesday for Europe to provide the necessary support to Ukraine's energy system to help the country prepare for a "tough" winter.



Real Estate Market Creates Positive Momentum in Saudi Market

Real estate in Makkah, western Saudi Arabia (SPA)
Real estate in Makkah, western Saudi Arabia (SPA)
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Real Estate Market Creates Positive Momentum in Saudi Market

Real estate in Makkah, western Saudi Arabia (SPA)
Real estate in Makkah, western Saudi Arabia (SPA)

In its first year, the Saudi real estate exchange recorded approximately 619,000 real estate transactions valued at over $273 billion (SAR 1.025 trillion), covering a total area of more than 5.4 billion square meters. Around 2.1 million beneficiaries have taken advantage of these transactions, according to the Saudi Ministry of Justice.

Real estate experts told Asharq Al-Awsat that the real estate exchange has had a positive impact on the behavior of all market participants.

The market has allowed buyers and investors to make purchase decisions with greater confidence, security, and speed. The exchange has also played a key role in simplifying and streamlining real estate procedures and enhancing transparency, which constituted major challenges in the past.

The experts recommended further steps to boost its effectiveness, including providing detailed and specialized real estate indicators, offering accurate analytical reports on market trends throughout the year, expanding property evaluations to cover all regions of the Kingdom, and leveraging artificial intelligence technologies to analyze real estate data.

Real Estate Expert Eng. Ahmed Al-Faqih told Asharq Al-Awsat that the real estate exchange has created a positive shift and significant impact on the behavior of all market participants, including sellers, buyers, investors, regulators, and market observers. He noted that the platform is characterized by transparency and governance, and its launch coincided with the digital transformation taking place in Saudi Arabia.

Regarding the additional services proposed for the market, Al-Faqih said he believes it lacks detailed and specialized real estate indicators. He also noted that the platform still needs property classifications for certain types of real estate and improvements in search filters to provide more precise results.

For his part, Real estate expert Saqr Al-Zahrani told Asharq Al-Awsat that the real estate exchange has brought a significant transformation in the management of real estate during its first year of operation.

It has had a clear positive impact on the market by streamlining procedures and enhancing transparency, he underlined, noting that the exchange has allowed both buyers and investors to make decisions with greater confidence.

Al-Zahrani suggested enhancing the exchange by adding more services, including providing detailed analytical reports on market trends throughout the year. He also recommended expanding property evaluations to cover all regions of the Kingdom more comprehensively and accurately.