Germany Spends 60 Million Euros on Emergency Gas Reserve as Storage Levels Drop

Germany Spends 60 Million Euros on Emergency Gas Reserve as Storage Levels Drop

Germany’s gas system has incurred a short‑term security buffer costing roughly €60 million, according to the business magazine “Capital”. The figure was cited by Trading Hub Europe (THE), the operator responsible for the reliability of the national grid. In early February, THE launched a special auction for extra volumes of regulation energy-essentially a market pull‑in of gas to keep the system balanced during a period of falling storage levels.

The auction’s total price was reported by a THE spokesperson as almost €59.1 million. All of the contracted requirements were fulfilled, and the operator expressed satisfaction with the results. For its role as a market‑area operator, THE must ensure that gas supply and consumption remain in equilibrium. It achieves this by purchasing regulation energy either on a short‑term basis or through longer‑term options, thereby securing capacity to smooth out variations.

Because German storage tanks were running low, THE’s February auction targeted delivery of gas into storage facilities-including those in Bavaria-for the period from mid‑February to mid‑March. The winning traders are obligated to move sufficient quantities into storage; if necessary, THE can tap that volume as balancing energy.

Long‑term options (LTOs) for winter readiness have been in place for some time. In the fall, THE already placed bids for the months of January to March, offering options of 14,410 MW each, with associated costs of about €50 million. The recent short‑term auction, covering 36,300 MW from mid‑February to mid‑March, is viewed by gas experts as an indication of a tightening situation in the German market. The costs for this balancing energy are covered by a dedicated surcharge.

When queried by “Capital”, the German Federal Ministry of Economic Affairs acknowledged that the precise cost of the additional regulation energy had not yet been disclosed. A ministerial spokesperson clarified that the auction was a purely preventive measure designed to secure local regulation energy during high‑load scenarios, and it was not governed by the Gas Storage Act and therefore does not constitute a gas surcharge. The LTOs can help maintain grid stability in southern Germany by providing capacity during peak demand, such as until LNG from the north reaches the south.