Government of Merz stands firm on non-intervention in gas storage crisis
Aint no truth to the gossip about the federal Ministry of Economics and Energy (BMWE) setting up a state-owned gas reserve to ease the gas storage crisis, according to a spokesperson who chatted with the Berliner Zeitung on Thursday. "Nah, there ain't no plans like that brewing within the BMWE," they spilled the beans.
This buzz-killer came after a US news agency, Bloomberg, reported way-off claims that the economics minister, Katharina Reiche (CDU), had tapped some experts to study the feasibility of a state-controlled gas storage system. That'd be some major market intervention, considering private firms are running the show right now. Trading Hub Europe GmbH (THE), the market area responsible entity, also happens to be a private biz.
The Gas Storage Crisis: No Room for State Intervention Just Yet
Gas importer and storage operator, Uniper, couldn't allot extra space in the Breitbrunn underground storage facility in Bavaria to gas suppliers or municipal utilities—the joint's still two-thirds empty. Germany's largest storage facility in Rehden, Lower Saxony, ain't looking much better, almost completely vacant. The storage facilities only fill up when traders predict gas prices will be higher in winter than in summer (summer-winter spread), but that difference ain't worth the storage cost now, since it's pretty low. Germany's gas storage facilities are sitting at 45-46 percent of their total capacity, which is way, way below the EU average (around 77 percent last year). If the situation takes a turn for the worse, THE may be forced to step in.
Reports: State Intervention Could Threaten Vacancy in Gas Storage - Merz Government
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In the same statement, the economics ministry maintained that there's no plan for THE to temporarily fill the gas storage facilities, serving as a backup for pending fillings by private companies. Such intervention to boost storage levels ain't a smart move given the overall stable gas supply and would just jack up costs for full gas storage, including for consumers, the spokesperson said.
The extra costs for state storage filling would ultimately get passed on to gas prices for end customers, because this measure would need to be covered by all consumers via levies. This ain't no good news for a market that's already feeling the strain.
THE: Pondering a "Storage-Based Security Reserve"
Current European regulations demand that Germany keeps certain gas storage levels, but they also set exceptions, the ministry spokesperson mentioned. The ministry made use of these loopholes with their decree of May 5, 2025. The deciding factor for THE's intervention isn't the fill level of individual storage facilities, but achieving a nationwide total fill level of 70 percent.
By the end of May, the Association of Gas Grid Operators (FNB Gas) has tossed out the combination model idea, which includes a storage-based security reserve with THE. THE has given a big thumbs up to this suggestion, as confirmed by a spokesperson upon request.
Consumer's ain't feeling the gas storage crisis just yet, but prolonged uncertainty could lead to pricier gas bills in the long run if storage facilities stay empty and operators' losses get passed on. Despite the BMWE's clarification, the gas market remains a nerve-wracking issue—with potential impacts for consumers and the industry.
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[1] Source: Inside Gas Storage, 2025[2] Source: Clean Energy Wire, 2025[3] Source: International Energy Agency (IEA), 2025[4] Source: Reuters, 2025[5] Source: German Federal Ministry for Economic Affairs and Energy (BMWi), 2025
- The economics ministry has made it clear that there are no plans for Trading Hub Europe (THE) to temporarily fill gas storage facilities, as such intervention could increase costs for consumers and potentially threaten the vacancy in gas storage facilities, according to a spokesperson.
- Despite the ongoing gas storage crisis, the economics ministry's economic and social policy does not currently involve state intervention to boost storage levels, as the ministry deems it unnecessary given the overall stable gas supply and the costs it would incur.
