Natural Gas Storage Order Issued in Germany Due to Low Occupancy Rates
Due to declining occupancy rates in storage facilities and ongoing geopolitical risks, the German government has issued an additional gas storage order to SEFE.
Following low occupancy rates in natural gas storage facilities in Germany and continuing geopolitical risks, Economy Minister Katherina Reiche instructed the state energy company SEFE to store more natural gas.
Storage Occupancy Rates and Geopolitical Risks
According to data from the German Federal Network Agency, the occupancy rate of gas storage facilities in the country was measured at 57.6 percent as of Tuesday.
Behind the low gas inflows into storage facilities are rising prices and cost increases in global markets following the Iran war.
New Order Given to SEFE
In line with the decision taken by Economy Minister Katherina Reiche in consultation with Chancellor Friedrich Merz, state-owned company SEFE will initiate the additional gas storage process.
To avoid negatively affecting the activities of other market participants, the company will procure the gas it needs through additional supply routes.
Strategic Reserve Plan for the Future
The German government has decided to establish a strategic gas reserve as a permanent solution against existing risks.
Following the completion of necessary legal regulations, the implementation of the strategic gas reserve is planned to begin in 2027.
Assessments from Industry Representatives
Kerstin Andreae, President of the German Association of Energy and Water Industries, supported the government's decision, stating that the step will provide additional security for the winter period.
Andreae emphasized that supply security in the country continues to remain strong through LNG terminals and diversified import sources.