Germany Weighs Market Incentives to Boost Record Low Gas Storage

Germany is facing a potentially dire gas shortage this winter due to historically low storage levels. According to Gas Infrastructure Europe, Germany's natural gas storage capacity is currently only 56% full as of mid-September, which is the lowest level in at least a decade and a half.

The country's storage association, INES, warned that refilling has 'fallen significantly short of the required pace so far this year' and that 'the window for sufficient refill is closing'.

To address this issue, the German government is considering expanding its existing market incentive, the autumn tender for Long Term Options (LTOs), to encourage traders to raise gas storage levels.

The government has agreed with state-held energy firms Uniper and SEFE that they would inject more gas into their storage facilities. However, it is still uncertain how much gas will be added through this measure.