Germany's Gas Storage Levels Hit Crisis Point Amid Soaring Market Prices
Germany's gas storage facilities are currently only 53% full, well below levels at the same point in recent years. This is causing concerns that the country may be heading for another gas crisis, similar to the one in winter 2022 when Russian deliveries via the Nord Stream 1 pipeline were halted.
The Federal Network Agency reports that reserves stood at 53% as of Thursday, September 3, compared to an average of around 70% at the same point in previous years. The shift in economics has made storage less viable due to high market prices linked to the war in Iran and the crisis in the Strait of Hormuz.
The German Association of Gas Transmission System Operators warned that even with a significant increase in LNG deliveries, it would be 'virtually unattainable' to reach the legally required fill level of 71% by November 1. The association noted that daily storage is currently below 0.5 TWh and that LNG terminals can cover barely 10% of customers' energy needs on a winter day.
Companies in the sector are pointing out new dependencies, particularly on American liquefied natural gas (LNG). This has sparked fears that Germany may struggle to meet its energy demands if prices continue to rise.