German utilities urge EU to ease gas import rules amid storage concerns
Clean Energy Wire
German utilities have urged the government to push for the removal of what they describe as regulatory and administrative hurdles by the EU that could hamper natural gas and liquefied natural gas (LNG) imports, as low storage levels and high prices linked to the Iran war fuel concerns over winter supplies.
In a statement, industry association BDEW pointed to the EU's methane emissions rules for gas, oil and coal – the bloc’s first comprehensive law to measure, report, and reduce the potent greenhouse gas – and called for a legally sound solution that would allow more gas imports to flow into Germany and Europe.
German state-owned energy firm SEFE said this week it had independently increased natural gas storage levels. A government source told newswire Reuters that economy minister Katherina Reiche would use market incentives to shore up gas storage, while avoiding the direct state purchases that have stoked prices in the past. In July, Germany's economy ministry revealed plans for a state-owned strategic reserve for emergencies, but initial filling is only due to begin by mid-2027.
The utility lobby group welcomed reports of the use of long-term options to help secure gas for later in the winter, arguing such incentives would not distort the market. At the same time, however, BDEW called for additional measures to secure gas supplies, including a reduction of the price for using storage facilities.
The German Chamber of Commerce and Industry, DIHK, said it “did not expect a supply problem, but a price problem”, as low storage levels could push up prices. Suppliers may have to buy more gas through other channels at higher prices, passing that cost onto consumers and businesses and further weakening the competitiveness of German industry. A recent report by business newspaper Handelsblatt said that some companies have started to launch precautionary measures for the event of a gas shortage due to concerns over low storage filling levels and higher prices.
The BDEW said the current situation is not comparable with the 2022 energy crisis, when Germany faced the prospect of physical gas shortages. The expansion of LNG import capacity has since added another source of supply, the association said.