The German Ministry of Economy and Energy has drafted a plan to establish a national gas reserve with a capacity of approximately 24 TWh, which represents less than 10% of the total capacity of Germany’s underground gas storage facilities. Deutsche Welle reported this, citing Reuters.
The reserve is expected to compensate for up to 30 days of interrupted pipeline gas supplies from Norway via the Dornum receiving terminal or up to 40 days without liquefied natural gas (LNG) imports.
In the event of an extremely cold winter and a complete halt in pipeline gas and LNG supplies, the government estimates that the reserves will be sufficient to supply households and commercial consumers for approximately ten days. Under normal weather conditions, this period increases to 18 days.
At the same time, the strategic reserve will not be used for seasonal market balancing. As before, ensuring sufficient supplies for the heating season will remain the responsibility of gas suppliers and energy companies.
At the expense of consumers
The costs of building up the strategic reserve, including the purchase and storage of gas, are estimated at 1.2–1.5 billion euros. Funding is planned to come from a special levy on gas consumers. Annual costs for maintaining the reserve could range from 150 to 180 million euros.
According to Reuters, the government’s final decision is expected in mid-August. The initiative must then be reviewed by the Bundestag. If approved, the new system could take effect on January 1, 2027.
The creation of a strategic reserve complements existing requirements for filling gas storage facilities. Currently, most storage facilities in Germany must be at least 80% full by November 1, while rules remain in effect in the European Union requiring gas reserves to be maintained at around 90% by the start of the heating season.
