The Federal Ministry of Economics sees supplies secured for the winter despite low gas storage levels

At the beginning of September, German gas storage facilities were around 53 percent full - the lowest they have ever been at this point in time.

Berlin. Despite historically low gas storage levels in Germany, the Federal Ministry of Economics sees no need for government intervention. Based on current knowledge, a gas shortage is not expected in the coming winter, according to a written briefing from the ministry for a special meeting of the Bundestag's economic committee available to Reuters on Tuesday.

The security of supply does not only depend on the storage level, but on the interaction between storage, pipeline and LNG imports and demand. In addition, Germany is more broadly positioned thanks to new LNG terminals and lower demand.

The Economic Committee wanted to discuss, among other things, gas supply in a special meeting on Tuesday evening. “According to the current volume-based assessment, storage levels in the range of 60 to 70 percent at the start of winter, together with further import options, are sufficient to cover the expected winter demand,” the ministry said in the briefing.

The reason for the slower than usual storage is the increased and volatile prices on the international gas markets as a result of the Middle East conflict. “According to current assessments, if restrictions last longer, this primarily means a price and volatility risk,” the ministry admitted. “This is to be distinguished from a physical gas shortage situation.” Winter precautions are generally the responsibility of the gas companies and retailers.

The gas storage association INES warned on Tuesday of possible supply bottlenecks in the event of a very harsh winter. The German storage facilities were only around 53 percent full at the beginning of September. This is the lowest level at this point since records began 15 years ago.