Germany Orders SEFE to Stockpile 8 TWh of Gas Amid Energy Crisis
Germany's state-owned gas importer, Securing Energy for Europe (SEFE), has been ordered by the government to boost its natural gas storage levels by 8 terawatt-hours (TWh) by December 15. This move comes amid concerns about supply security as the country struggles to fill its gas storage sites due to a lack of market incentives and high benchmark gas prices.
The instruction was given in response to the ongoing energy crisis, which has been triggered by a seven-month blockade of LNG flows through the Strait of Hormuz. As of September 29, EU gas storage sites were only 71% full, compared to over 80% for the same time last year and the five-year average.
Germany's own gas storage levels are at a historical low for this time of year, with its vast storage facility sitting at just 57% capacity. The government is considering expanding market incentives to encourage traders to raise gas storage levels ahead of the winter.