Berlin imposes gas storage in Gazprom facilities on German soil
The German government has ordered the storage of gas in the country’s largest storage facility, at the Rehden site, to ensure security of supply. Gas reserves in the facility sold to Gazprom have so far been at historically low levels.
In absolute volume, Germany’s gas reserves are the largest in the European Union. However, its gas storage capacities had been undermined as the largest gas storage facility, which is at the Rehden site, was sold to Gazprom in 2015. The facility’s inventories hovering around 2% of their capacity permanently, the German government has decided to act.
“We are taking another important step to further strengthen security of supply and preparedness in Germany and to be sufficiently equipped for the coming winter in particular”Robert Habeck, Germany’s Minister for Economics and Climate Action, said late Wednesday (June 1).
“Given that storage levels at Germany’s largest gas storage site in Rehden have been at a historically low level for months, there is a need for quick action here”he continued.
In order to avoid spending another winter with low gas reserves, the German government promulgated a law on April 30th requiring reserves to be filled to 80% from October 1st. This law also gave the government the power to intervene by decree if the constraints linked to gas storage were not achievable in the near future.
” In the case [du site] of Rehden, given the war in Ukraine, this is the case »explained Mr. Habeck in a press release.
In early April, the German government was forced to block the liquidation of Gazprom Germania, the German subsidiary of the Russian public company, by nationalizing it.
Today, with the interruption by Gazprom of gas deliveries to the oil company Shell, of which 1.2 billion cubic meters were destined for the German market, the situation seems to be getting worse.
“With the ministerial decree, we are creating the conditions for the manager of the Trading Hub Europe market area to start injecting gas as soon as possible”explained the German minister.
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