Germany Scrambles to Fill Gas Storage Ahead of Winter

Heading into the fall with unusually low gas reserves, the German government is abandoning its reliance on the market. Meanwhile, regulators are preparing to restrict industrial gas consumption if a shortage occurs.

Germany is heading into the fall with unusually low gas reserves, prompting the government to intervene in storage levels. Photo: Stringer/Getty Images

Germany is heading into the fall with unusually low gas reserves, prompting the government to intervene in storage levels. Photo: Stringer/Getty Images

For the first time this year, the German government is intervening to boost the country’s gas reserves. Economy Minister Katherina Reiche has instructed the state-owned gas importer Securing Energy for Europe (SEFE) to purchase additional natural gas, according to several media reports. The aim is to raise storage levels above 70%. Germany’s facilities are currently just under 56% full.

Until now, the Federal Ministry for Economic Affairs and Energy (BMWE) had insisted that it did not intend to intervene in the market. Companies had, however, been warned by a grid operator of a possible shortage. In early September, the ministry acknowledged that the situation was tighter than last winter but continued to rely on the market. The government still says it does not expect a gas shortage.

From Market Reliance to Intervention

On 12 August, the BMWE said that filling storage facilities was the responsibility of traders, companies and suppliers. “We have no intention of intervening in the market”, a ministry spokesman said at the time. Government intervention, he added, would create additional costs.

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