European storage facilities are above the usual levels near the end of the heating season and the weather outlook remains favorable, which means demand is unlikely to increase significantly in the near term, the bank noted.

Given the prevailing weak demand for gas in the EU, there has been little need for additional storage capacity, even as Ukraine recently made more of its gas storage facilities available to international traders, Commerzbank said.

However, this could change in the medium to long term if demand for gas picks up as a result of economic growth recovery or a complete halt in Russian gas supply, the bank said. A transit agreement is set to expire in 2025.

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