FX.co ★ Germany unprepared for coming winter

According to Klaus Mueller, President of the German Federal Network Agency, underground gas storage facilities in the country are not sufficiently filled for the coming winter. The head of Germany's main consumer association urged the government to address this problem in a short time.

In case of Russian gas supply disruptions or halted supplies, it will be difficult for Germany to survive the winter, Mueller stated. Although the Federal Network Agency has raised the amount of power capacity needed in reserve for the 2022/23 winter season compared with previous years, current LNG volumes are not enough to stand ready in the coming cold season. Germany’s gas storage facilities should be at least 90% full, the head of the agency stressed.

In this case, the country would have a “buffer” for around two and a half months under stable conditions and normal winter temperatures. The daily storage filling rate in Germany is currently 0.4%. At the same time, Germany will soon receive floating liquefied natural gas terminals. The first one is set to enter operation in Wilhelmshaven as early as 2022, and the second one - in Brunsbüttel in early 2023.

Mueller believes that current costs are associated with gas imports. Against this background, one should not expect a decline in gas prices in the coming months.

Earlier, Russian economists predicted that European countries would face enormous challenges to get by without Russian gas in the winter of 2023.