Uniper fills 70% of contracted gas storage despite market headwinds

German energy giant Uniper has reached 70% capacity in its contracted natural gas storage facilities, according to CEO Michael Lewis. The announcement comes despite a wholesale market environment that has offered limited economic incentives for storage this summer.

Speaking after signing a supply agreement with Norway's Equinor, Lewis explained that an inverted price curve—where summer prices exceed winter prices—has discouraged typical storage activity. "Now that doesn't mean to say we haven't stored any gas," he said, noting the company has been actively purchasing and storing where conditions justify it.

The CEO indicated that price spreads have improved in recent weeks, allowing Uniper to continue its daily market participation. The company will maintain its storage strategy as market signals permit.

Industry data shows German storage levels at just over 50% of total capacity as of Thursday, compared with 76% a year earlier. European Union-wide storage stands at approximately 62%.

The challenging storage economics stem largely from the ongoing conflict in Iran, which has driven up summer gas prices and reduced the profitability of holding inventory for winter. The closure of the Strait of Hormuz—previously a route for 20% of global LNG supply—has further tightened markets and lifted prices worldwide.

Uniper's newly signed deal with Equinor will deliver 30 terawatt hours annually starting January 2027, but Lewis noted this will not address immediate winter storage needs. He emphasized the importance of diplomatic solutions to the regional crisis while affirming Uniper's commitment to securing supply for its customers.