Germany's SEFE, Uniper to Use Storage Capacity More Fully as Winter Nears
SEFE says it independently raised gas storage levels; Berlin agrees with SEFE and Uniper to use storage capacity more fully as winter looms.
German state-owned energy firm SEFE said it had independently increased its natural gas storage levels, as Europe heads into winter with the lowest inventories in years.
Germany and other European nations have moved away from cheap Russian gas since the 2022 invasion of Ukraine and are now racing to rebuild depleted reserves before the colder months. Disruptions to Middle East supplies have tightened the global market and pushed up costs for consumers and industry.
A government source said Economy Minister Katherina Reiche would rely on market incentives to shore up gas storage, avoiding the direct state purchases that have stoked prices in the past. Berlin has also agreed with state-owned energy companies Uniper and SEFE that they will make fuller use of their storage capabilities, the source added.
SEFE, a gas importer that operates around a quarter of Germany's gas storage capacity, said it had "taken an independent commercial decision to fill the booked storage capacity".
Uniper said that while it was in regular discussions with market participants and authorities, the company alone would decide how to use its storage assets, adding this would happen "solely on the basis of economic criteria".
European gas prices reached their highest in almost four years this week on faltering diplomatic efforts to open the Strait of Hormuz, through which around a fifth of the world's oil and liquefied natural gas supply passed before the Iran war.
Germany's gas storage sites were around 53% full in early September, the lowest level for the time of year since records began 15 years ago, according to storage association INES. The government maintains that the filling of caverns should be taken care of by the market, not via political intervention.
The Economy Ministry said it is ready to take targeted measures for gas supply security if the situation deteriorates. "As a matter of principle, winter preparedness is the responsibility of the market and energy utilities must fulfil their obligations," it said.
Uniper said its gas trading business had already stored more gas "than other market players", adding it would meet supply obligations even under challenging market conditions such as a particularly cold winter, and it was suitably prepared.