Germany faces years of gas supply anxiety – storage operators

Lazy eyes listen


Germany will experience gas shortages in the next years unless more fuel infrastructure is built, according to Bloomberg, citing the INES group of gas storage companies.

The EU’s largest economy, according to the group, might face shortages during the heating season, when storage is routinely tapped. While reserves are now “developing positively” and nearly 90% full, a hard winter might still jeopardize German energy security.

“The danger of gas shortages during cold temperatures remains and will continue to accompany us until winter of 2026/2027 unless further infrastructure measures are taken,” INES director Sebastian Bleschke told the news site.

If the upcoming winter is frigid, the group predicts that stockpiles will be depleted by the end of January 2024. According to INES, the best method to avoid a crisis is to build more liquefied natural gas (LNG) terminals, storage capacity, and pipeline connections.

Germany, which relied on Russia for 40% of its gas demand before 2022, was among the hardest hit by Russian energy supply cuts last year. Deliveries were either severely reduced or completely ceased after the EU imposed sanctions on Moscow in response to the Ukraine conflict.

Due to favourable winter weather, efforts to cut use, and the installation of LNG facilities, Germany has been able to build up storage. However, as the heating season approaches, there are still concerns about a potential fresh gas crisis.