Uniper Fills 70% of Gas Storage Capacity Amid Challenging Market Conditions

Germany's Uniper has made significant progress in filling its gas storage capacity despite challenging market conditions. The company's CEO, Michael Lewis, revealed that they have filled around 70% of their contracted gas storage capacity, a feat achieved despite the lack of economic incentives due to high wholesale prices.

The Iran war has had a profound impact on the global energy market, driving up prices and making it less lucrative for companies to store gas. Typically, energy companies store gas during the summer months when prices are lower, but this year's situation is unprecedented. Lewis acknowledged that the inverted summer-winter spread, where summer prices are above those for winter, has made storing gas unappealing.

However, Uniper remains committed to securing gas for its customers and has signed a 30 terawatt hour (TWh) per year deal with Norway's Equinor starting from January 1, 2027. This agreement will not directly benefit this winter's gas storage needs, but it shows the company's determination to secure reliable gas supplies.

The global LNG market is also affected by the closure of the Strait of Hormuz, which has lifted prices worldwide. Lewis emphasized the need for a diplomatic solution to resolve this issue and ensure a stable gas supply.