Energy: Germany secures gas for the winter for 245 million euros

Berlin. Given that gas storage levels are significantly lower than last year, Germany is securing additional gas deliveries for the coming winter. The special tenders to secure supply in February and March 2027 alone cost around 107 million euros, as the operator Trading Hub Europe (THE), which is responsible for organizing the German gas market, announced on Friday in response to a Reuters query.

In addition, there is around 137 million euros for regular tenders, with which THE, as every year, secures gas deliveries for possible network bottlenecks. Overall, the costs for keeping it ready amount to almost 245 million euros. The tenders were awarded on Friday.

According to data from October 21, German gas storage facilities were only 61.1 percent full. A year earlier at the same time it was 75.4 percent. The additional tenders are related to efforts by Economics Minister Katherina Reiche (CDU) to increase security of supply in view of low storage levels.

Unlike the regular tenders, the gas must be able to be provided from gas storage facilities in the additional supply agreements. This is intended to give energy traders a financial incentive to leave gas in storage longer and possibly store additional quantities.

The contracts are a type of insurance in the event that additional gas is needed. The companies involved undertake to supply certain quantities of gas if required. They receive compensation for this, even if the gas is not used later. The almost 245 million euros are initially costs for keeping things ready.

If gas is actually required, the costs for the quantities supplied will be added. The contracts do not mean that a corresponding amount of additional gas has already been stored. According to THE, almost all of the advertised requirements were met. The tenders were significantly oversubscribed, meaning there were more offers than needed. According to THE, the costs were higher than for comparable tenders in the previous year.