Germany Sees Gas Reserves Reaching 85% A Month Ahead Of Schedule, But Is It Enough?

Germany seems to be shoring up its energy reserves faster than its emergency plan as the country heads into the winter season.

German Economic and Climate Action Minister Robert Habeck said that the country’s natural gas reserves are expected to reach 85% of its storage capacity by September, a month earlier than its plan.

“The reservoirs are filling up faster than specified,” Habeck said in an interview with German Der Spiegel magazine.

The government identified in its energy plan to have the storage facilities full at 75% by September 1 but the storage levels are already at 82.2%.

Berlin is fast approaching its target storage in preparation for winter despite the significant cutbacks from its gas imports from Russia–trying to dispel the characterization that the country is dependent on Moscow to keep the lights on.. Norway has taken over most of the country’s import needs.

Following the news, natural gas prices in Europe tumbled to below €260 per megawatt-hour after its nearly 40% hike the week before.

However, energy stability might still be far from reality beyond the coming winter. In a paper submitted by London School of Economics and Political Science’s Benjamin Moll, the “total German storage capacity of about 240 TWh is small relative to both inflows and outflows.”

“For example, the storage capacity equals “only” the gas consumption of about two winter months (120 TWh per month) and gas imports of about three months (80 TWh per month),” Moll wrote. He added that active inflows alongside the outflows could only extend the lifetime from two months to six winter months, given that winter consumption is higher than the inflow.

“The reservoir is simply not large enough. The large reduction in inflows means that even a reservoir at 100% capacity just isn’t enough to make it through the high-demand period,” he added.

Compounding to this problem, the recent ifo index has fallen for a third consecutive month, hitting 88.5 in August. Aside from it being the lowest level it has reached since the pandemic, the index also indicates a further shrinking of Germany’s economy in the third quarter.


Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Demand For LNG Fuel Set To Rise As Global Shipping Companies Look To Upgrade Fleet

Amid the growing economic chaos surrounding the coronavirus pandemic, there appears to be an emerging...

Saturday, September 26, 2020, 11:25:00 AM

Ruble Trouble: German Energy Buyers Foresee Deteriorating Impact Of Putin’s Ruble Payment Demand

In a response to the mounting sanctions imposed by the global community, Russian President Vladimir...

Friday, March 25, 2022, 11:34:00 AM

NG Energy: Revenue Generation To Begin By April – The Daily Dive feat Serafino Iacono

Today on the Daily Dive, we sit down with seasoned executive Serafino Iacono, whom is...

Wednesday, February 24, 2021, 01:30:00 PM

EU Tries to Find Middle Ground with Vehicles that Run Only On E-Fuels

The European Commission seeks to create a new vehicle category that’s somewhere between internal combustion...

Thursday, March 23, 2023, 10:58:16 AM

Europe Gas Doomsday Resurfaces After Russia Closes Nord Stream 1 Again For Repairs

The feared gas doomsday in Europe might have been averted in July 2022. However, tensions...

Thursday, September 1, 2022, 12:39:00 PM