Germany's natural gas storage sits just over 50% of capacity, far below last year's pace, as higher prices tied to the Iran war push companies to delay purchases. Industry group BDEW says the country's 70% target for early November is still reachable but getting harder to hit, while Berlin says winter supply faces no immediate threat.
Germany is falling behind on its natural gas storage goal as the Iran war keeps prices elevated, energy industry group BDEW said Friday. Companies typically stock up over summer when prices run lower, but the war has made storage less profitable than selling gas directly on the market, so purchases have slowed.
German storage levels stood at just over 50% of capacity as of Thursday. That compares with 76% a year earlier and roughly 62% across European Union countries, according to transparency platform AGSI. The country aims to fill natural gas storage to 70% of capacity by early November.
BDEW says the target is tight but still reachable
BDEW managing director Kerstin Andreae told Deutschlandfunk radio that reaching the goal remains possible despite the slower pace. According to Deutschlandfunk: "Physically, it's still achievable, but it's getting tighter and tighter". She said companies will keep delaying purchases unless incentives address the economic risk, and suggested the government could make buying more attractive by adjusting taxes, fees or levies.
Berlin sees no immediate supply threat
Germany's energy ministry said Thursday there is no immediate threat to supplies for the coming winter, and it is preparing measures that could be rolled out quickly if conditions worsen. Meanwhile, European gas prices rose Friday morning to fresh five-month highs as talks between the U.S. and Iran showed no progress. The benchmark Dutch front-month contract at the TTF hub has more than doubled since the start of the year.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
