Germany sees gas storage intervention inappropriate — Bloomberg

Germany considers intervention in gas storage replenishment as a last resort, even if its target levels are not met. If liquefied natural gas supplies keep arriving in the country by the start of November, it may not be appropriate for the market operator, Trading Hub Europe (THE) to step in to support injections. This was stated in a memo from the country's Federal Ministry for Economic Affairs.

Storage facilities in the region exited winter with unusually low energy reserves. In recent weeks, Germany has lagged behind some neighbors, including Italy and France, in injection rates. These countries have already implemented market support measures, Bloomberg reports.

Germany previously lowered its national gas storage targets in an effort to ease pressure on consumers and suppliers. Earlier this year, speculation about storage difficulties rendered stockpiling economically unviable. Injection typically occurs during periods of low energy demand to enable subsequent sales at higher prices.

Germany’s Ministry for Economic Affairs stated that THE’s intervention in this matter would be inappropriate. Under EU requirements, any support measures must be strictly limited to the essential minimum.