German Gas Marketer Seeks State Subsidy to Refill Storage | OilPrice.com
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Breaking News:
Trading Hub Europe GmbH, the German natural gas market area manager, is holding “intensive discussions” with Germany’s authorities to potentially receive subsidies to refill gas storage sites amid fast-depleting inventories and rallying forward gas prices.
“We are still in talks with the ministry as well as the regulator, and as soon as the product will be finalized, we can have then some deeper talks about the question when to launch this product,” Trading Hub Europe’s managing director Torsten Frank told Bloomberg in an interview published on Tuesday.
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Since 2022, Trading Hub Europe has been responsible for ensuring the security of supply in Germany.
With gas in storage falling at the fastest pace in years this winter, German and other gas market operators are concerned that the high gas prices for the summer – when refilling typically occurs – discourage traders and companies from stockpiling the fuel.
That is why several EU member states, including Germany, are discussing potential government support for the refilling of gas inventories to have storage levels up to at least 90% full by November 1, 2025, head of the next winter.
“In the end the instrument will be a financial support for those building and taking part in the process,” Trading Hub Europe’s Frank told Bloomberg.
“The main point is that gas is in the storage by Nov. 1. Not having gas according to the requirements is not an option.”
This week, Dutch TTF Natural Gas Futures, the benchmark for Europe’s gas trading, surged to the highest level since February 2023. The first proper winter in Europe with prolonged periods of cold snaps since the 2022 energy crisis is depleting the EU stockpiles of natural gas, which have dropped to the lowest level since the crisis for this time of the year.
As a result, European prices are rallying, and with most of Europe now relying on LNG imports for its natural gas supply, it has recently become more efficient for industries to burn oil and coal – wherever possible – as they are cheaper feedstocks than gas right now.
By Charles Kennedy for Oilprice.com
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