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Money Talk

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Germany Struggles to Fill Gas Storage Amid Record Lows

With German gas storage sites hovering at just 56% capacity—a fifteen-year low—the federal government is scrambling to incentivize traders before winter sets in. The current market structure, plagued by high prices and backwardation, has effectively penalized those attempting to hold supply, leaving the nation vulnerable to potential shortages.

Germany Struggles to Fill Gas Storage Amid Record Lows

The government plans to expand the scope of its existing Long Term Options (LTOs) autumn tenders to bridge the gap. Officials are aiming to avoid a repeat of the 2022 state-led emergency interventions, preferring instead to lean on market mechanisms. To this end, state-controlled energy firms Uniper and SEFE have been tasked with accelerating injections into their facilities to bolster national reserves.

Industry group INES remains skeptical that these measures will suffice. Managing Director Sebastian Heinermann noted that while reaching a 77% storage level is technically possible, the current lack of economic viability discourages participation. As the window for refilling storage closes, the divergence between booked capacity and actual physical supply remains the primary threat to Germany’s energy security this coming winter.

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