Germany Says No State Help Needed for Gas Storage as Winter Looms

Germany's economy ministry has said that no government intervention is required to boost gas storage levels ahead of winter, even as a lobby group warns of potential shortages during an extremely cold season. In a document prepared for a parliamentary committee meeting, the ministry stated that storage levels of 60% to 70% at the start of winter, combined with additional import options, would be enough to meet expected demand.

The assessment comes amid concerns over elevated gas prices following the Iran war, which the ministry acknowledged poses a price and volatility risk. However, it stressed that this should not be confused with a physical gas shortage. The ministry also highlighted that Germany now has access to liquefied natural gas (LNG) terminals, an option that was unavailable during the 2022 energy crisis.

As of September 1, underground gas caverns in Germany were only 53% full, the lowest level in 15 years of records, according to the lobby group INES. Typically, energy companies and traders store gas during the summer when prices are lower, but the Iran war has driven up prices, making storage less profitable than selling gas on the market.

The document was prepared for the economic affairs committee, which was scheduled to hold a special meeting on Tuesday evening.