By Holger Hansen
BERLIN, Nov 11 (Reuters) — The German government is moving forward with its plan to create a 24-terawatt-hour gas reserve, which will be financed through user surcharges, according to the economy ministry. This decision comes after criticism regarding the country's failure to meet gas storage targets for the upcoming winter heating season.
This state reserve will represent about 10% of Germany’s total gas storage capacity and will be built up over a period of up to three years, as stated by the ministry on Wednesday.
The initiative aims to tackle significant disruptions, such as those caused by sabotage. However, it does not replace the responsibilities of the private sector when it comes to seasonal storage.
According to the ministry, “The gas reserve does not relieve market participants of their responsibilities, which include preparing for winter and fulfilling supply obligations.”
To support the reserve, households may see gas prices increase by approximately 0.3% to 0.5%, the ministry indicated.
Opposition parties and Italy have criticized Germany’s low gas storage levels, which were at 62% at the end of October, falling short of the 70% target.
Berlin maintains that its gas supplies remain secure, thanks to increased purchasing options through liquefied natural gas terminals and pipelines from Norway, unlike in 2022 when the full-scale invasion of Ukraine by Russia led to an energy crisis.
The government is also planning various measures to enhance regulation in the gas market, including mandatory seasonal stock keeping for gas utilities, a spokesperson from the ministry told Reuters on Wednesday.
An informant close to the situation revealed that the plans may include closer inventory monitoring by the network regulator, as the government is also exploring actions to ensure gas supplies for power plants and industrial sites.
Documents obtained by Reuters suggested that establishing the reserve could cost between €1.26 billion ($1.41 billion) and €1.81 billion, in addition to ongoing expenses.
($1 = 0.8957 euros)