Economy
Germany Told to Do More on Gas Reserves as Storage Hits Record Low Ahead of Winter
Germany's gas storage levels stood at 61.35% on October 30, well below the 80% target set for November 1, prompting the storage industry to call for a tougher filling mechanism before winter.
Photo: Forextime.com / Wikimedia Commons (CC BY 2.0). Photo shows a stock market concept, not German gas storage facilities.
Germany must review and improve its mechanism for filling its gas caverns, the gas storage industry association INES said on Sunday, as storage levels in Europe's top economy remained at record lows ahead of the winter season.
As of October 30, gas storage levels stood at 61.35%, well below an 80% target Germany has set for November 1, raising fears about supply shortages even though Berlin has said there will not be any bottlenecks.
"The failure to meet storage level targets shows that storage levels for coming winters must be guaranteed more rigorously," INES Managing Director Sebastian Heinermann said in a statement.
The main driver for lower storage levels has been the Iran war and its impact on prices, which has made filling caverns over the summer uneconomical, according to INES.
Heinermann said it was right and important that the Federal Ministry for Economic Affairs is open to the introduction of an obligation on suppliers, adding: "We must now discuss specific options for the design of a storage obligation at the earliest opportunity, so that it can be enshrined in law without delay."
INES has prepared a report together with gas grid operator association FNB Gas that it says will help inform the political process.
Germany on Friday rejected accusations from Italy that it had failed to fill its gas stores ahead of winter in order to reduce costs for its gas import companies to prepare them for privatisation.
Source: Reuters
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