Germany proceeds with 24-terawatt-hour crisis gas reserve

Germany’s economy ministry said on 11 November that the government would proceed with a 24-terawatt-hour crisis gas reserve, financed through user surcharges. The ministry said the stock would amount to about 10% of the country’s gas storage capacity and be accumulated over up to 3 years.

The decision follows criticism of Germany’s winter preparations: gas storage stood at 62% at the end of October, below the 70% target. Opposition parties and Italy criticized the low level.

Emergency stocks and costs

The reserve is intended to address severe disruptions, such as sabotage, the ministry said. It will not replace private suppliers' duties to keep seasonal stocks, prepare for winter and meet their supply obligations.

The ministry said funding the reserve would likely raise household gas prices by 0.3% to 0.5%.

Documents seen by Reuters put the likely cost of setting up the reserve at between €1.26 billion and €1.81 billion, plus running costs.

The German government has said supplies remain secure because terminals for liquefied natural gas and pipelines from Norway offer more purchasing options than in 2022, when Russia’s full-scale invasion of Ukraine triggered an energy crisis.

Further rules planned

A ministry spokesperson said the government also plans tighter gas-market rules, including mandatory seasonal stock keeping for gas utilities. A person close to the matter said the plans include closer monitoring of inventories by the network regulator and that the government is considering measures to secure gas supplies for power plants and industrial sites.