Germany ordered the state importer to speed up gas pumping amid low reserves

Germany's government instructed the state-owned energy company SEFE to increase purchases of natural gas and its injection into storage facilities before the winter season. The decision was made by Minister of Economy and Energy Kateryna Reiche in agreement with Chancellor Friedrich Merz.

SEFE confirmed receipt of the official instruction. The company is to purchase and inject into storage about 8 TWh of gas by December 15. For comparison, the total capacity of German gas storage is about 247 TWh.

The government resorted to direct intervention because of relatively low gas reserves before the heating season. At the end of September, German storage facilities were about 58% full, while the legislative target for November 1 is about 70%.

Already in mid-September, SEFE has started purchasing gas for storage after negotiations with the ministry. At that time, the company emphasized that it was its own commercial decision, not an order from the government. Now the situation has changed: the ministry issued a formal order to increase reserves.

The Ministry of Economy explains the strengthening of measures by geopolitical risks and the need to enhance the resilience of gas supplies in winter. At the same time, the authorities have earlier avoided large-scale state purchases, fearing that active state acquisition could push prices further up.

SEFE — formerly Gazprom Germania, which was previously owned by Russia's Gazprom. Germany nationalized the company after the start of Russia's full-scale war against Ukraine and the energy crisis. Today SEFE remains one of the key players on the German gas market and through its structures manages a significant part of gas storage capacities.

Source: Handelsblatt, SEFE