The stock keeping follows the rules of the market
(Photo: dpa)
Berlin. NRW Economics Minister Andreas Pinkwart (FDP) wants to introduce state gas storage. In view of the low filling levels of the natural gas storage facilities, “as a last resort, a strategic national gas reserve must be examined,” Pinkwart told the Handelsblatt.
“The very low gas storage levels in this early phase of winter highlight a fundamental problem,” he added. On the basis of the current market design, “nobody is responsible for storing sufficient quantities of gas in storage facilities at an early stage,” said Pinkwart.
According to industry information, German gas storage facilities are currently 57 percent full. This value is well below the long-term average at this time of the year. There are currently no noteworthy feedings into the gas storage facility. The price situation is extremely tense.
Pinkwart recommended orienting oneself on the oil supply. There has been a state-regulated supply of crude oil for decades. The oil reserve is organized and monitored by the Petroleum Storage Association (EBV).
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All German companies that import or process oil are compulsory members of the EBV, especially the large mineral oil groups. The reserve is intended to cover German oil needs for at least 90 days in an emergency.
Stock keeping according to the rules of the market
It is different with natural gas: the stocks only follow the rules of the market. The current low level is partly explained by the fact that after a cold winter 2020/2021 and a gas price that has been rising since spring 2021, gas traders have not used the summer to stock up for the next winter. The high gas price has kept them from doing so.
In addition, Russia is not implementing its promise to increase gas supplies again. President Vladimir Putin announced at the end of October that he would be sending more gas to Europe from November 8th. The Russians did not keep this promise.
They only supplied more natural gas for a few days after November 8th. According to the Ukrainian transport network operator, the Russians are not using the capacities they are entitled to for gas transit through Ukraine.
Pinkwart says the current situation makes it clear “that we have far too few sources of supply for natural gas deliveries and corresponding transport infrastructures such as LNG terminals, which we will also need for hydrogen imports”.
The FDP politician calls for a state gas supply as a last resort.
(Photo: imago images / Political-Moments)
Adjustments to the regulatory framework have been made in recent years to encourage gas reserve procurement. Pinkwart is convinced that they are not enough. The gas reserves would have to be “tendered early and in sufficient amount to ensure a minimum capacity at the end of the heating season in a harsh winter,” said Pinkwart.
Pinkwart seeks a conversation with Habeck
According to Pinkwart, he wants to “approach Federal Minister of Economics Robert Habeck at short notice and, together with the industry, tackle what I believe to be the necessary refinement of existing instruments and the development of further instruments”. This could also help prevent erratic price fluctuations on the gas market.
Habeck’s ministry is reluctant, however. “The gas supply in Germany is still secure. There are currently no supply bottlenecks, ”said the ministry on request. Habeck’s house pointed out that there was a continuous exchange with other EU countries in order to further improve crisis management in the gas sector.
The SPD also has reservations about state stockpiling. “Even without an expensive state gas reserve, nobody will be sitting in a cold apartment this winter,” said Johann Saathoff, long-time energy policy expert in the SPD parliamentary group and parliamentary state secretary in the Federal Ministry of the Interior for a few days.
There is a wide range of instruments to respond to in the event of a shortage. “Of course, given the changing market environment for natural gas, one could think about regulatory changes,” said Saathoff. For example, incentives for storage could be created to compensate for a lack of price spread between summer and winter, he said.
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