Business · Energy & Commodities · 11 hrs ago

Germany approves plan for strategic gas reserve

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.

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What people are saying

Katherina ReicheGerman economy minister
The strategic gas reserve does not insure us against high prices, but against crisis situations.
via WirtschaftsWoche
Michael KellnerGreen Party politician and former economy ministry state secretary
The storage facilities are at a historic low this year. The ministry is acting too late.
via WirtschaftsWoche
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.
via WirtschaftsWoche