Germany's Gas Reserves: No Government Intervention Needed

The German economy ministry reports no government action is needed to raise gas storage levels despite warnings of potential shortages if winter is extremely cold. Current assessments show levels between 60% to 70% starting winter, paired with imports, will meet demands, though price risks remain due to the Iran conflict.

The German economy ministry has announced that no government intervention is required to boost gas storage levels in the country, according to a document prepared for a parliamentary committee meeting. This statement comes despite warnings from a lobby group about potential gas shortages if there is a particularly harsh winter.

The ministry's report, seen by Reuters, indicates that the current storage levels between 60% to 70% at the onset of winter, combined with available import options, will suffice to meet expected winter demands. The report also highlighted the risk of price volatility due to increased prices following the Iran conflict, distinguishing it from an actual physical gas shortage.

Additionally, the document points to the availability of imports through pipelines and liquefied natural gas (LNG) terminals as strategic options not available during the 2022 energy crisis. As of September 1, gas storage caverns in Germany were only 53% full, marking the lowest level in 15 years, according to lobby group INES.