BERLIN, August 20. /TASS/. Germany does not expect any gas shortages in the upcoming winter season despite the low level of gas reserves, the country’s Ministry for Economic Affairs reported.
"According to currently available data, a gas shortage this winter is not expected," the ministry said in a document. However, future government intervention is not ruled out. The ministry noted it takes seriously the fact that Germany's underground gas storage (UGS) facilities are significantly less full than in previous years. "At the same time, security of supply cannot be assessed solely by storage inventory levels," the ministry explained.
The ministry recalled that gas is supplied, in particular, via pipelines from Norway, through liquefied natural gas (LNG) import terminals, and from neighboring European nations. "At the same time, it is also true that lower inventory levels reduce the safety margin in emergencies," the ministry noted. This becomes especially critical if several factors combine: "for example, prolonged cold spells coupled with the failure of vital import infrastructure or additional disruptions in the global LNG market," the ministry clarified.
According to the ministry's estimates, filling storage facilities to 60-70% of capacity by the start of winter, combined with import capabilities, will be sufficient to meet average winter demand. This summer, gas prices have risen significantly due to the conflict surrounding Iran and the blockade of the Strait of Hormuz, prompting traders to scale back purchases for winter sales. "A tight market situation with high prices is not yet a supply crisis," the ministry concluded.
