SEFE (German Energy and Gas Supply Company), as a state gas importer, has been ordered by the government to increase its natural gas reserves by 8 terawatt hours (TWh) by December 15, 2023. This decision comes in response to the energy crisis resulting from Russia's attack on Ukraine and the European Union's sanctions against Moscow.
Current Status of Gas Reserves in Germany
Germany, which nationalized the Russian gas company Gazprom in 2022 and renamed it SEFE, is currently facing serious challenges in gas supply. According to published information, gas reserves in the European Union were only 71% full as of September 29, 2023, down from 80% last year and below the five-year average. In particular, Germany's reserves, which are the fourth largest gas reserves in the world, are only 57% full, raising concerns about energy supply during the winter season.
Read more: The gas crisis in Europe is exacerbated by the LNG shortage in Hormuz
New Measures for Energy Supply
The German government is considering expanding market incentives to encourage traders to increase gas reserves before the winter season begins. This action could help improve the reserve situation, especially given forecasts of severe cold in the upcoming winter. Currently, gas prices have reached their highest level since January 2023, making gas supply more difficult for companies.
SEFE, as the owner of this project, is required to make necessary purchases to increase the volume of gas at storage sites. This action is taken to ensure energy supply security at a time when LNG flows from the Strait of Hormuz have been halted for seven months. Increasing gas reserves is a priority on the government's agenda, and SEFE, as the executor of this plan, must help achieve this goal.
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