Germany faces winter gas crunch as storage hits 15-year low

Germany is heading into the winter season with natural gas storage levels at their lowest point for the period since records began in 2011, according to the Energy Storage Initiative (INES). The country’s facilities were around 53 percent full at the beginning of September, well below the 71 percent recorded at the same time last year.

INES warns of winter supply pressure

INES estimates that Germany could raise storage levels to roughly 77 percent by November 1, but achieving that target would require a substantial acceleration in injections. The organization cautioned that even this level would not necessarily provide enough protection if temperatures fall sharply across Europe during the winter.

INES Managing Director Sebastian Heinermann stressed the risk posed by prolonged cold weather. “A storage level of 77 percent will not be sufficient in extremely cold conditions,” he said, warning that Germany could face a supply deficit as early as January if demand rises significantly.

High gas prices discourage storage

The reluctance of gas companies to replenish reserves more aggressively is also linked to market conditions. Gas prices have risen following the closure of the Strait of Hormuz amid the Iran-US war, while the relatively weak difference between summer and winter prices has reduced the financial incentive to purchase gas now and store it for later use. In effect, companies face the prospect of buying gas at prices higher than those expected for the following winter.

Berlin says supply remains secure

Germany’s Economy Ministry has sought to ease concerns, saying there is currently no immediate threat to security of supply. The ministry points to Germany’s access to liquefied natural gas (LNG) terminals and pipeline supplies from Norway as important sources of flexibility. Officials maintain that current conditions do not warrant direct government intervention, despite the warnings over storage levels.