Business · Energy & Commodities · 11 hrs ago
Germany approves plan for strategic gas reserve
Germany’s cabinet has approved a strategic gas reserve to protect supplies during severe disruptions, sabotage or other emergencies.
The reserve is planned to hold 24 terawatt-hours of gas, about 10% of the country’s storage capacity, and is intended to cover a 30-day shutdown of gas imports.
It would be used only after the government officially declares a gas emergency, and would not protect customers from high prices.
The government plans to have the reserve in place by next winter, while also preparing possible winter supply duties for gas suppliers.
Costs are expected to be passed on partly through a charge on gas customers, but estimates differ: one account puts the annual cost for a typical household at up to €7.20, while another gives a range of €5.80 to €9.40.
The reserve comes as German storage levels are lower than in recent years, though the economy minister says storage levels alone no longer determine supply security because of additional liquefied natural gas imports.
Germany’s cabinet approved a plan to create a strategic gas reserve for severe supply disruptions and emergencies.
The reserve is planned to hold 24 terawatt-hours of gas and is intended for use only in an officially declared gas emergency.
The government plans to finance the reserve through a charge passed on to gas customers.
A draft estimate puts the one-time cost of building the reserve at €1.26 billion to €1.81 billion, while TASS reported annual costs of up to €308 million.
Germany’s gas storage facilities were 58.5% full on November 9, below levels recorded on the same date in the previous two years.
- Who
- Germany’s cabinet approved the plan, proposed by Economy Minister Katherina Reiche.
- What
- The government approved a strategic gas reserve, with a planned volume of 24 terawatt-hours.
- When
- The cabinet approved it on November 11, 2026.
- Where
- Germany.
- Why
- To help maintain gas supplies during severe crises, including sabotage or other emergencies.
German government
Michael Kellner
Timing and need
German government
The government says the reserve is a measure to improve security of gas supplies during severe crises.
Michael Kellner
Kellner says the ministry is acting too late, while agreeing that a reserve is necessary.
Financing
German government
The government’s draft provides for a charge passed on to gas customers.
Michael Kellner
Kellner criticized the government’s position on the charge; the sources do not give his preferred funding method.
Germany’s gas storage facilities were 58.5% full, according to the latest available data cited in the articles.
The cabinet approved the strategic gas reserve and an Economy Ministry policy paper on further security measures.
The government plans to establish the reserve.
- Target reserve volume
- 24 terawatt-hours
- Storage level
- 58.5% on November 9, 2026
- One-time construction cost estimate
- €1.26 billion to €1.81 billion
- Annual household charge estimate
- €5.80 to €9.40 for a typical single-family home
- Use of reserve
- Only after an official gas emergency is declared
4 sources
What people are saying
The strategic gas reserve does not insure us against high prices, but against crisis situations.
The storage facilities are at a historic low this year. The ministry is acting too late.
The gas reserve is necessary; it provides security during serious disruptions. More important would be a federal government that breaks away from expensive and climate-destroying gas.