Germany can rebuild its natural gas stockpiles this summer without a repeat of the state intervention that came during the peak of the energy crisis, according to Trading Hub Europe GmbH.
(Bloomberg) — Germany can rebuild its natural gas stockpiles this summer without a repeat of the state intervention that came during the peak of the energy crisis, according to Trading Hub Europe GmbH.
THE — Germany’s market operator — purchased 50 terawatt-hours of gas for storage in 2022, after the government approved €15 billion ($16.5 billion) in loans to the firm to cushion the impact of Moscow’s supply squeeze. THE was criticized by some observers for spending too much as prices climbed to a record €340 a megawatt-hour in August.
Now prices have slumped below €40 and spreads between summer and winter contracts are returning to normal. Futures for the upcoming heating season are trading at a premium, encouraging inventory refills, Sebastian Kemper, one of managing directors at THE, said in an interview on the sidelines of the Flame gas conference in Amsterdam.
“In my opinion, every market participant wants to pour gas in storage now,” Kemper said.
Government officials have argued that security of supply was the priority, and prices have dropped thanks to state measures to curb consumption and stockpile fuel. Germany, which has Europe’s biggest gas-storage capacities, ended this winter with inventories more than 60% full — far above historic norms.
THE still has 37 terawatt-hours of gas left in reserves, or roughly 22% of Germany’s total stockpiles, based on data from Gas Infrastructure Europe.
Those volumes will continue to be stored, and usage of that gas will be later discussed with the government, Kemper said. Earlier this year, THE contracted storage capacities for the 2023/2024 gas year.
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