Germany to Create Strategic Gas Reserve to Guard Against Emergencies
The reserve would cover 24 TWh of gas and could offset 30 days of lost import capacity, the Economy Ministry said.
- On November 11, European gas prices surged 140% since the war on Iran began, with Gas Infrastructure Europe reporting storage levels at 71.6% capacity—the lowest for the season since 2011.
- The Strait of Hormuz, through which 20% of global oil and gas passes, remained shut for close to eight months, constraining supply and forcing Europe to rely on alternative sources.
- Iranian attacks cut 17% of Qatar's export capacity, while supply from outside the Gulf offset only about two-thirds of lost volumes, leaving Europe with depleted reserves as winter approaches.
- Market volatility pushed gas prices above roughly $112 USD per megawatt-hour—a threshold last crossed in 2022—affecting household bills and energy policy across Europe.
- The International Energy Agency models that a cold winter combined with continued Strait of Hormuz disruptions could drop European storage below 10% by end-March, threatening energy security.
118 Articles
118 Articles
Europe Enters Winter With Its Lowest Gas Inventory of the 2020s
Asian spot LNG is trading above $30 per million British thermal units and Europe is entering winter with its lowest gas inventory of the 2020s, yet Rystad Energy stops short of predicting a further rally. In its winter LNG outlook, published this week, the consultancy lays out as many ways for prices to fall as to rise and tells buyers to plan for a wide range of outcomes instead of one base case. EU storage sites were 71.6% full in Gas Infrastr…
The German government on Wednesday approved a bill to create a strategic gas reserve to ensure the country's "energy resilience" in case of emergencies.
Despite the Exit: Federal Government Wants to Use Coal-Fired Power Plants if There Is a Gas Shortage
By law, the Federal Government wants to oblige operators of coal and oil power plants to step in in the event of a possible gas shortage. They should already store fuel for this.
Germany entered the heating season with the lowest gas reserves in measurement history. In early November, bins were only 61 percent filled, when the legal target is 70 percent. On Tuesday, only 58.5 percent had been saved, according to the European Association of Gas Infrastructure Operators, when inventories fell 0.45 percent in a single day.
Minister of Economic Affairs Katherina Reiche restructures crisis preparedness. The cabinet decided on its draft law on gas reserves – financed by a levy.
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