Germany enters winter with gas storage at 62%, missing its 80% target
Germany’s gas stores are about 62% full, short of the statutory 80% target before the heating season, the Financial Times reports. The country’s continued spot-market purchases could push up prices elsewhere in the EU, while Germany’s economy ministry says new LNG terminals and an interconnected European system give it more supply options than in 2022.
Bottom line — European gas prices topped €100 per megawatt-hour on Wednesday, their highest level since December 2022.
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Germany’s storage facilities hold 250 TWh; EU stores overall are just below 75% full, according to the Financial Times.
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Gas storage can supply up to a third of EU demand in winter, the FT reports.
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Germany relied on market incentives rather than requiring storage operators to fill facilities over the summer.
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The FT reports that high summer prices reflected supply disruption through the Strait of Hormuz and gas demand for electricity during a European heatwave.
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Italy’s stores are 91% full after the country spent €300 million, according to the FT. An Italian official accused Germany’s late purchases of adding to costs elsewhere.
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Germany’s economy ministry said it had reasons for missing the target, including the Hormuz conflict and resulting price rises.
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Energy minister Katherina Reiche ordered state-owned Sefe in September to buy and store more gas by mid-December.
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INES managing director Sebastian Heinermann called for binding measures to secure storage for future winters.
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European gas demand has fallen by roughly 20% since 2021, the FT reports.