Federal Minister of Economics Katherina Reiche (CDU) is reacting to the low filling levels of gas storage facilities in Germany and is increasing the security of gas supplies. Reiche, in consultation with Chancellor Friedrich Merz (CDU), decided that the federally owned energy company Sefe would be instructed to store more natural gas, said a spokeswoman for the ministry.
The central reason for this step lies in the ongoing geopolitical risks. “From the perspective of crisis prevention, this step is an important additional contribution to increasing the resilience of the German gas supply.” The “Handelsblatt” first reported on it.
Sefe: Instructions received
A spokesman for Sefe confirmed that the company had received instructions from the Ministry of Economic Affairs to procure and store 8 terawatt hours of gas by December 15.
For comparison: According to the industry association Energy Storage Initiative, storage in Germany has a total volume of around 247 terawatt hours.
Low levels
The filling levels of the gas storage facilities are currently at a comparatively low level of just under 58 percent. That has sparked concerns about gas supplies in the winter.
Wholesalers normally buy natural gas cheaply in the summer. They store it and resell it in the winter for a profit to also cover the costs of storage. This so-called summer-winter spread is an important economic incentive for filling gas storage facilities. However, because of the Iran war, the Strait of Hormuz, which is important for supplies, remains blocked. This ensures high wholesale prices.
According to previous information from the Federal Association of the Energy and Water Industry, this means that storage is only economically attractive to a limited extent, as gas has to be purchased more expensively in the summer than it can be sold for the winter according to current expectations. The Green energy politician Michael Kellner had accused Reiche of a lack of precaution.
Prepared instrument
The ministry spokeswoman said that Reiche had always made it clear that the ministry was closely following developments on the gas market and had prepared instruments for different scenarios that could be used if necessary - especially with a view to the geopolitical situation. “This need has now arisen.” Commissioning the Sefe with additional procurement is one of these prepared instruments.
Sefe will decide for itself which quantities will be stored at what time and will procure these through additional deliveries, said the spokeswoman. The expectation for all other market players to fulfill their obligation to store gas for the winter remains “without any ifs or buts”.
“Precautions taken”
Three weeks ago, Reiche emphasized the government's ability to act. “We have taken precautions for every scenario,” said the CDU politician in the Bundestag. In a report from the Ministry of Economics for a special meeting of the Bundestag's Economic Committee in mid-September, it was said that, based on current knowledge, a gas shortage is not expected in the coming winter.
In mid-September it was also said that the ministry was in talks with Sefe so that the company could store more gas. At that time, Sefe announced that he would be purchasing gas. But it received no instructions from the ministry.
Sefe was formerly called Gazprom Germania and was a subsidiary of the Russian state-owned company Gazprom. As a result of Russia's war of aggression against Ukraine and the energy crisis, the company was nationalized. The EU Commission has determined that the federal government must largely privatize Sefe again by the end of 2028.
State gas reserve planned
Reiche plans to build a strategic gas reserve to cover risks. The minister had mentioned crisis situations in which energy flows to Germany were disrupted. The ministry spokeswoman said that the construction of the gas reserve will begin in 2027 after the corresponding change in the law.
The financing of the gas reserve is open. Reiche told the German Press Agency that there were two financing options. One is a levy on gas customers, the second is financing from the federal budget. Maybe there is also a mixed model.
