In the middle of the gas injection season in Europe, the largest gas storage facility in the EU is empty. The German authorities are saving on expensive gas, realizing the risk that fuel will be even more expensive in winter.
According to GIE, European storages are 60% full, and German storages are 52% full.
The rate of pumping this season is higher than in previous years, as traders need to buy additional tens of billions of cubic meters that were burned last winter.However, this does not apply to Europe's main storage facility, the German Reden, which once belonged to Gazprom's subsidiaries and is now managed by the nationalized SEFE. According to GIE, on July 5, the UGS was filled by 2.45%. It contained only 104 million cubic meters out of a possible 4.3 billion cubic meters.
According to statistics, by last winter the storage was filled beyond capacity, and by the beginning of April its reserves had already fallen below 7%. But this was not a reason to start the injection season, as in all other UGS facilities in Germany. The selection continued from the vault.
One of the reasons why the vault is empty is that there is no demand. The difference between summer and winter gas quotes does not exceed $ 30 per thousand cubic meters and it is not profitable for traders to spend on storage.
SEFE itself does not pump fuel either. Gas is still expensive, and the German Bundestag has seriously relaxed the requirement to fill the storage facilities. If previously the norm was 90% by November 1, now it is only 45%.
Previously, there was also a gas storage tax, which cost every German household 20-60 euros per year and helped the nationalized company to buy fuel for future use. Now it has also been canceled.
The Federal Network Agency told NDR TV channel that it does not deny the risks, but it is necessary to look at all German storage facilities, not just Reden.
"In addition, the Federal Grid Agency refers, for example, to LNG terminals in Wilhelmshaven, Brunsbüttel and Mukran in Rügen. This will make it possible to quickly obtain LNG in an emergency situation," the German TV channel continued.
On the one hand, the practice, when the largest repository is empty, allows you to save resources. On the other hand, the risk of overpaying even more and even being left without gas, since German terminals are mostly booked by non-German companies, is growing many times.
"If a shortage threat arises overnight, Germany will have to buy natural gas or LNG on the market at the current price," NDR noted.
The desire of the German government to save money is understandable, but risky, said Sebastian Heinermann, managing director of Ines storage facilities. He told this to the Wirtschaftswoche magazine.
"Remembering the crisis years, I'm not sure if it was the right decision of the government (to reduce storage limits). The filling level targets existed for a reason," said Sebastian Heinermann.