Germany to Create Strategic Gas Reserve to Guard Against Emergencies
The plan would require exporters to reserve up to 20% for domestic users, while opponents warn it could weaken future gas investment.
- On Wednesday, the German government approved a strategic gas reserve to provide a buffer against supply shocks and protect deliveries for priority users.
- Energy Minister Katherina Reiche said the plan addresses Europe's scramble for new supplies since the loss of Russian gas, with costs surging this year due to the US war on Iran.
- Set to hold 24 terawatt-hours of gas around 10 percent of storage capacity, the scheme costs up to $449 million annually, increasing household bills by 0.3 to 0.5 percent.
- This reserve volume covers a 30-day scenario where primary import infrastructure is unavailable, or 40 days of shutdown for German LNG terminals, helping avert industrial consumption curbs.
- Reiche insisted that "the supply is secured for this winter according to current assessments," as the reserve replaces mandatory storage targets introduced after Russia's full-scale invasion of Ukraine.
54 Articles
54 Articles
The Federal Government has launched the introduction of a strategic gas reserve.
Germany is going to establish a state-led gas reserve after missing the targets for filling gas reserves for the winter. The state gas reserve is intended to become as large as 10 percent of the current storage capacity.
With a national gas reserve, the Federal Government wants to secure the supply in crisis situations - this is expressly not about high prices, but about exceptional cases such as sabotage. This will result in additional costs for gas customers.
Germany to create strategic gas reserve to guard against emergencies
Set to be financed through a surcharge on consumers, the reserve is due to hold 24 terawatt-hours (TWh) of gas, around 10 percent of the country's storage capacity. From 2027, it is intended to replace the mandatory gas storage targets introduced after Russia's full-scale invasion of Ukraine. "The past years have shown us how quickly an apparently secure energy supply can start to falter," said Energy Minister Katherina Reiche. "The strategic g…
The Federal Government is launching a gas reserve as an instrument of crisis preparedness. What scenarios gas customers should be protected from - and how much it will cost.
Berlin is embarking on this reform while its gas storage is only 59% filled, according to the European AGSI platform, a historically low level for the season.
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