Germany's Gas Supply Faces Winter Uncertainties Amid Low Storage Levels
Germany's gas supply is facing significant uncertainties this winter due to various risks, including low storage levels and disruptions in international liquefied natural gas (LNG) supply. Professor Andreas C. Goldthau points out that gas storage levels are at historically low levels, making it unlikely for the mandated refill targets to be met by November.
The ongoing conflict in the Strait of Hormuz is creating market uncertainty as significantly less LNG is available globally. Even isolated regional events, such as hurricanes affecting US LNG facilities or a strike at Australian export terminals, could have an impact on the international gas market and lead to price spikes during the winter period.
Goldthau warns that it would be best if nothing went wrong this winter, but notes that there is considerable uncertainty regarding future price trends. The European gas market remains shrouded in deep uncertainty ahead of the winter, with Goldthau calling for a review of the regulatory governance model for the German gas storage sector.