Key facts
- Germany has ordered state-owned gas importer SEFE to increase gas storage by 8 TWh by December 15.
- SEFE was formerly a unit of Russia's Gazprom.
- As of September 29, EU gas storage sites were 71% full.
- Germany's gas storage sites were 57% full as of September 29.
- Low storage levels have prompted concerns about supply security for the upcoming winter.
Securing Energy for Europe (SEFE), Germany's state-owned gas importer, has been directed by the government to increase its natural gas storage by 8 terawatt-hours (TWh) by December 15. The company confirmed the order on Wednesday.
Germany nationalized SEFE, previously a unit of Russia's Gazprom, in 2022 amid the energy crisis triggered by Russia's invasion of Ukraine. The move was intended to ensure the country's energy supply security.
This year, Germany is facing challenges in replenishing its gas storage sites due to limited market incentives and rising benchmark gas prices, which have reached their highest levels since January 2023. The current energy crisis has been exacerbated by a lack of LNG flows through the Strait of Hormuz for seven months.
As of September 29, gas storage sites across the EU were at 71% capacity, a decrease from over 80% at the same time last year and below the five-year average. Germany's own storage facilities are particularly low, standing at only 57% full, raising concerns about potential supply shortages if the upcoming winter is colder than usual. Earlier this month, a government source indicated that Germany was considering expanding market incentives to encourage higher storage levels.