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
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.
By 2 September, the ministry’s assessment had begun to shift. The situation was “indeed tighter than last winter”, the BMWE said. Although it did not expect a shortage, the ministry said it was continuously monitoring storage levels, import volumes, international markets and infrastructure. It maintained that the market was supplying gas and that companies remained responsible for filling storage facilities.
That position changed on 15 September. According to Handelsblatt, SEFE has already begun making additional purchases. The gas is to be bought gradually to avoid driving up prices significantly.
The move comes with storage levels still far below last year’s. On 26 August, Germany’s gas storage facilities held 126.8 terawatt-hours of gas, according to the government. They were 51.2% full, holding 45.2 terawatt-hours less gas than a year earlier. By mid-September, the figure had risen to just under 56%.
Most German storage facilities are legally required to be at least 80% full by 1 November. For several underground porous rock facilities, which take longer to fill, the government has already acknowledged that their individual targets can no longer be met by the deadline. The Federal Network Agency, Germany’s electricity and gas regulator, is taking the low levels seriously but sees no immediate supply crisis.
Further Government Intervention Is Possible
Germany already has legal mechanisms for more extensive intervention. If companies fail to inject enough gas into storage, Trading Hub Europe (THE), the operator of Germany’s gas market area, can take additional measures with the approval of the Economy Ministry and the Federal Network Agency. THE can buy gas itself and book storage capacity.
The mechanism was used during the 2022 energy crisis. Until now, the government had not considered it necessary to use it again this year.
The BMWE is also planning a strategic state gas reserve of 24 terawatt-hours for sudden import disruptions or other serious supply shocks. It will not be available for the coming winter. The first storage capacity is due to be booked for the winter of 2026/27, with the first gas scheduled to be injected in summer 2027.
Regulator Prepares for Industrial Gas Cuts
Alongside efforts to increase reserves, Germany has procedures in place for a potential gas shortage. The country has been in the early warning stage of its Gas Emergency Plan, the first of three crisis levels, since 1 July 2025. If the government declares the emergency stage, the Federal Network Agency will decide how scarce gas supplies are distributed. Companies have recently been asked to ensure that their information on the Security Platform Gas is up to date.
The platform is operated by the Federal Network Agency and THE. Large gas consumers are required to register and provide information on their consumption, connections and load profiles. This allows the regulator to order individual companies to reduce their gas use.
For very large consumers, the agency can issue individual orders setting a maximum permitted level of gas consumption. Such reductions are designed to take effect 72 hours after notification.
An LNG tanker carries liquefied natural gas, which has become an increasingly important part of Germany’s energy supply. Photo: Daniel Reinhardt/dpa/picture alliance via Getty Images
Smaller commercial consumers can also be required to make proportional reductions. The importance of individual production sectors to critical supply chains can be taken into account, allowing certain businesses to continue receiving gas even during a shortage.
There is no fixed order in which consumers would be cut off. Private households and certain social institutions, including hospitals, are legally protected consumers. Industrial companies generally are not.
Boosting Supply, Preparing to Cut Demand
Germany is therefore preparing for the coming winter on both the supply and demand sides. The government has abandoned its previous reluctance to intervene and is using the state-owned SEFE to put additional gas into storage. At the same time, the Federal Network Agency is prepared to impose binding reductions on companies’ gas consumption if the emergency stage is declared.
Both the government and the Federal Network Agency currently consider Germany’s gas supply secure. “In general, the Federal Network Agency assesses Germany’s gas supply as stable. Security of supply is guaranteed”, the government says.
Whether Germany nevertheless faces a shortage this winter will depend in part on storage levels, temperatures and gas consumption. Pipeline imports, particularly from Norway, together with expanded LNG import capacity, are intended to safeguard supplies. A cold winter, higher consumption or further disruption to international energy markets could increase the pressure.
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