German Gas Storage Group Calls for Policy Clarity Amid High Prices
FRANKFURT (Reuters) - German policymakers must decide how to refill gas storage caverns for the coming winter, storage operators' group INES said on Thursday, or there could be shortfalls.
The task is complicated by ongoing talks over the formation of a new government, and by the fact that summer prices are currently higher than winter prices. Some market players are betting that Germany will have to subsidise the feed-in.
"We cannot assume that the storage caverns will reach the legally required filling levels before the coming winter on a purely market economy-driven basis," said INES managing director Sebastian Heinermann, presenting a bi-monthly seasonal update.
INES' 16 members control around 25% of European Union gas storage.
The state-mandated gas market manager Trading Hub Europe (THE) is evaluating options with the energy regulator, but both report to the economy ministry. With coalition talks ongoing, there is no timeframe on a decision for how to proceed.
Germany's gas stores, which can hold 23 billion cubic metres, or a quarter of annual consumption, were 31.5% full as of Tuesday. A year ago, that level was 67%.
The current target under national and EU law, drawn up in the 2022 energy crisis, is for stores to be 90% full by November 1.
Current high summer prices are encouraging the withdrawal of volumes from storage for sale. Some 120 terawatt hours (TWh), or half of full capacity has been flowing out of the caverns since the start of the year, INES data show.
(Reporting by Vera Eckert Editing by Mark Potter)
