Germany Weighs Market Incentives to Boost Record Low Gas Storage Level
The government may expand autumn Long Term Options tenders as storage sits at 56% and industry warns refill is lagging.
- On Wednesday, the German government considered expanding the autumn tender for Long Term Options to encourage traders to boost gas storage levels ahead of winter, according to a Reuters source.
- Europe's largest economy faces historically low storage, with Gas Infrastructure Europe data showing facilities only 56% full in mid-September as backwardation and Middle East crisis concerns discourage holding supplies.
- Industry association INES warned last week that refilling has "fallen significantly short of the required pace so far this year," with the window for sufficient refill closing rapidly.
- To avoid direct state purchases, energy firms Uniper and SEFE have agreed to inject more gas into their facilities, ensuring filling remains economically viable.
- While reaching a storage level of around 77% remains technically possible, INES Managing Director Sebastian Heinermann cautioned that simply booking storage capacity is insufficient to prevent winter shortages.
23 Articles
23 Articles
The gas reservoirs are not full enough. In order to fill them, the Federal Government has a special tear line. Supposedly, it pulls them now.
The German government is still not going to invest in gas to speed up replenishment, but will limit itself to incentives for traders who are unprofitable this year to store gas in PHG.
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Germany Plans New Gas Incentives as Winter Supply Concerns Grow
Germany is preparing to use market incentives to encourage traders to maintain larger gas supplies for the coming winter as storage levels remain at their lowest seasonal level in 15 years. The government is also working with state-owned energy companies Uniper and SEFE to make greater use of available storage capacity.
Germany's gas storage facilities are unusually empty for this season. Minister Reiche therefore wants to increase the financial incentives for traders to hold more gas for the winter.
After weeks of inaction, the Federal Government has instructed the state-owned company "Securing Energy for Europe" (SEFE) to fill gas storage tanks. Already in ...
The Federal Minister for Economic Affairs now wants to do something about the imbalance on the gas market. She rejects fuel price caps and over-profit taxes for mineral oil companies.
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