Germany risks facing a gas shortage this winter if temperatures fall sharply, as low storage levels could leave the country exposed during periods of extreme cold, Reuters reported, citing Germany’s gas storage industry association INES.
German underground gas storage facilities were 53% full as of September 1, the lowest level recorded for this time of year in 15 years, according to INES.
The association said storage facilities could reach a maximum filling level of 77% by November 1, the target date for winter preparedness. However, this level would not be sufficient to guarantee supplies during an extremely cold winter.
“In a normal temperature scenario, this would be sufficient to guarantee gas supplies and leave storage 38% full by April 1,” INES Managing Director Sebastian Heinermann said.
“However, a filling level of around 77% is insufficient in extremely cold temperatures,” he added, noting that daily supply shortfalls could reach 25% in January under such conditions.
Traders have booked storage capacity equivalent to 83% of Germany’s available storage volumes. However, slow injections during the summer have limited the amount of gas that can technically be stored before the winter, Heinermann said.
Reaching the 77% target would require gas injections of around 1 terawatt hour (TWh) per day, a rate that has not been recorded over the past three weeks.
“If we keep filling at the rate of the past three weeks, we will only reach a filling level of 63%,” Heinermann said.
INES attributed the slow pace of injections to unfavorable storage economics. Gas storage operators typically rely on a price spread between cheaper summer gas and more expensive winter gas. However, the spread has been too narrow and, after fees and levies, has at times turned negative, reducing the economic incentive to build stocks.
To accelerate storage injections, INES has proposed abolishing certain charges and providing subsidized government loans to support gas storage operators and ensure adequate supplies are available for the winter.
