Half-filled gas reserves
As winter approaches, concerns about gas supply security have been raised, with Ines, a leading union of German and hydrogen gas storage operators, highlighting potential challenges. Ines CEO Sebastian Heinermann has expressed concern about the situation, as the current gas storage levels are lower than in previous years.
According to Ines, new gas contracts are 43% more expensive than last year, and the slow progress in the storage process since April 1 has left the filling level at 51% as of the end of June. Based on the currently marketed capacities, the filling level will not be reached until November 1. A filling level of 70% is not sufficient for a secure supply, even at very low temperatures, and Ines warns that a complete supply would no longer be possible with current consumption patterns.
Despite these challenges, measures are being taken to ensure gas supply security during the upcoming winter. The Federal Network Agency emphasises the diversified supply situation in Europe, particularly through LNG terminals, which has been strengthened in recent years. This diversification helps mitigate risks associated with low storage levels.
The European Union has extended its Gas Storage Regulation until 2027, allowing for flexibility in meeting gas storage targets. This flexibility is crucial for adapting to market conditions and technical constraints. Germany has also lowered its gas supply alert to the lowest level, reflecting market stabilization and reduced supply bottlenecks.
The Federal Network Agency will continue to monitor the market's achievement of filling level targets. If necessary, the Federal Ministry for Economic Affairs can intervene to ensure security of supply. The EU’s energy security framework is being reviewed to enhance resilience and ensure price stability, with a coordinated effort across the EU aiming to maintain stable energy supplies during winter.
Ines, which represents over 90% of German gas storage capacity and around 25% of all gas storage capacity in the EU, is a significant player in the European gas storage market. The high cost of new gas contracts and the low filling levels of gas storage are contributing factors to the potential supply issues in the coming winter. Even a complete filling of the gas storage in neighbouring countries would not be sufficient, according to Ines.
While the situation is closely monitored, and measures can be implemented if needed to maintain security of supply, the concerns raised by Ines serve as a reminder of the challenges that lie ahead in ensuring a secure gas supply during the upcoming winter.
- To address potential challenges in the upcoming winter, the employment policy within the community should consider adding incentives for investments in renewable energy sources, such as solar and wind, to reduce reliance on natural gas.
- As Ines emphasizes the importance of a secure gas supply during climate-change, industries like environmental-science could contribute by focusing on developing efficient and sustainable solutions for energy consumption.
- To alleviate financial burdens, wealth-management companies should consider making personal-finance resources available for homeowners and businesses, promoting energy-efficient upgrades and insulation measures that reduce gas consumption.
- In the face of increasing gas prices and diminishing storage levels, the government could develop a specialized employment policy aimed at creating jobs in the emerging hydrogen industry, which could eventually replace natural gas as a cleaner energy source.
- As the security of the gas supply becomes a critical issue, businesses and industries should collaborate to find innovative solutions in environmental-science to minimize gas usage, demonstrating a collective responsibility towards our planet and future generations.
