Germany’s gas storage falls below government target
Germany’s gas storage levels have reached a record low for this time of year, according to the latest figures reported on 1 November. The Initiative Energien Speichern (INES), an industry association representing gas storage operators, has urged the government to review and strengthen its storage-filling mechanism.
The country’s reserves stood at 61.03% on 1 November, against the government’s 80% target. This gap has raised concerns about Germany’s ability to manage higher consumption during a particularly cold winter or unexpected disruptions to imports.
The situation follows a difficult summer refilling season, when high gas prices and limited commercial incentives discouraged companies from replenishing underground storage facilities.
Iran war and LNG disruptions add to supply pressure
The Iran war has played a major role in making gas storage more expensive. Higher international prices have reduced the incentive for energy companies to buy gas during the summer and inject it into underground storage facilities.
Disruptions to LNG shipments through the Strait of Hormuz have added another layer of uncertainty. According to estimates cited in September, LNG flows through the waterway had fallen to just 15%–25% of pre-war levels. Qatar also extended force majeure on LNG shipments to Asian and European customers by another month, with deliveries to Europe expected to resume in December.
The price impact is already visible. German gas prices, which averaged around €46 per megawatt-hour in the second quarter, subsequently climbed above €80 per megawatt-hour. The usual summer-winter price difference, which makes it commercially attractive to buy and store gas during warmer months, also disappeared.
Will Germany face a gas shortage this winter?
Germany is not expected to face an immediate gas shortage despite its depleted reserves. Since 2022, the country has widened its network of gas suppliers and now gets supplies through pipelines, LNG terminals and existing import agreements. These sources should help meet demand over the winter, even with storage levels well below the government’s target.
Germany's energy regulator has also played down concerns about missed storage targets. Its president, Klaus Mueller, said meeting the prescribed storage levels was no longer essential for ensuring secure supplies, given the country's additional LNG import capacity. However, he cautioned that gas had become considerably more expensive.
The wider European outlook remains challenging. A combination of unusually cold weather, continued LNG disruptions and weak wind generation could increase pressure on gas-fired power plants, pushing electricity prices higher. Analysts have warned that Europe may also have to compete more aggressively with Asian buyers for available LNG cargoes.