Germany has asked its state-owned energy company, SEFE, to boost its natural gas storage by an additional eight terawatt-hours (TWh) by December 15. This move is intended to prepare for the winter and is attributed to "persistent geopolitical risks." The German Ministry of Economics, in coordination with Chancellor Friedrich Merz, described the action as an "important additional contribution to strengthening the resilience of Germany's gas supply" in times of crisis.
Currently, the country's gas reserves are at around 57%, according to the AGSI platform, which is significantly lower than the more than 70% recorded a year ago. At the Rehden site in Lower Saxony, operated by SEFE and considered Germany's largest gas storage facility, the fill level was only about 13% as of Wednesday, compared to over 50% at the same time last year. SEFE, which used to be a subsidiary of the Russian company Gazprom and is now owned by the federal government, has been ordered to buy and store the extra gas, with the company deciding the purchase schedule itself.
The Ministry of Economics noted that rising gas prices, which have occurred since the closure of the Strait of Hormuz in the Middle East—a key route for Qatar's liquefied natural gas (LNG)—and the small price difference between summer and winter have reduced the motivation for energy companies to fill reserves. The ministry emphasized that the measures given to SEFE are meant to send a "clear signal to the rest of the sector," urging its members to "fully respect" their storage obligations for the winter.
Germany is planning to establish a strategic gas reserve starting in 2027, similar to its existing oil reserve, after necessary legislative changes are made. Authorities are confident there will be no shortage, even in the case of a harsh winter or new import disruptions, in part due to new LNG terminals being built along the coasts of the North Sea and the Baltic Sea. Minister of Economics Katherina Reiche had previously opposed early market intervention to prevent price increases. However, her ministry now believes the "circumstances now justify" activating a pre-prepared mechanism to ensure supply security.
Germany Directs Energy Firm to Boost Gas Reserves Ahead of Winter
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