Germany Plans Strategic Gas Reserve for Energy Security

Germany is planning a state-owned strategic gas reserve to ensure energy security during emergencies. The reserve will hold around 24 TWh of gas, funded by a consumer levy. It aims to protect against energy infrastructure sabotage and global shortages, with operations beginning from 2027.

Germany is taking decisive steps to bolster its energy security by setting up a state-owned strategic gas reserve. This initiative, confirmed by the Economy Ministry on Tuesday, aims to prepare for emergencies by maintaining a reserve of around 24 terawatt-hours (TWh) of gas, roughly 10% of Germany's gas storage capacity.

The reserve, financed through a levy on gas consumers, is designed to shield the nation from critical situations such as sabotage or severe global shortages. Gas acquisitions will be staggered over two to three years to prevent price surges, with initial storage plans slated for the winter of 2026/27 and gas filling starting in summer 2027.

In a move triggered by the vulnerabilities exposed following Russia's invasion of Ukraine, Germany seeks to ensure its energy infrastructure remains robust. The estimated cost for establishing the reserve, including gas purchases, ranges between €1.2 billion and €1.5 billion, while annual operation costs are projected between €150 million and €180 million, with cabinet approval expected by mid-August.