Germany's Gas Trading Hub to Hold Talks on How to Increase Storage Levels

The German gas trading hub said it will hold discussions with traders at a energy industry event in Essen on Tuesday evening to discuss ways to boost the country's declining gas reserves.

Trading Hub Europe (THE) has proposed consultations at the E-World of Energy Trade Fair in response to concerns that storage caverns might not be adequately refilled next winter due to a reversal of seasonal price trends which have made summer filling less appealing.

The consultations are purely an information-gathering exercise and not related to any tendering process, THE emphasised.

Gas Infrastructure Europe data shows that although Germany has the largest gas storage capacity in Europe, sites are only 49% full compared to 72% last year.

The cold winter weather has increased demand, pushing European prices for the first month to levels not seen in two years. Storage caverns are also being depleted faster than they have been during recent winters.

The summer price projections indicate that there will not be any relief in prices due to factors such as increased competition globally for liquefied gas (LNG), since Russia has stopped exports of LNG into western markets.

The, as the government's appointed auctioneer and administrator for a quarter German storage space, must find marketing and subsidising instruments, said THE last month.

(source: Reuters)