Germany plans strategic gas reserve to guard against energy crises

Germany’s Economy Ministry said on Tuesday, July 7, it is preparing plans to establish a state-owned strategic gas reserve for use in emergencies, confirming an earlier Reuters report.

According to the ministry, the reserve would have a capacity of around 24 terawatt-hours (TWh) of gas — equivalent to just under 10% of Germany’s total gas storage capacity—and would be financed through a levy on gas consumers.

The reserve is intended to provide a safeguard against extreme scenarios, including sabotage of critical energy infrastructure or a severe global gas shortage.

To limit potential market disruption, the ministry said gas purchases would be spread over a period of two to three years. The first storage bookings are scheduled for the winter of 2026/27, with initial filling expected to begin in the summer of 2027.

Germany has been working to bolster its energy security since Russia’s invasion of Ukraine prompted a rapid effort to replace Russian gas supplies and exposed vulnerabilities in Europe’s energy system.

A person familiar with the matter previously told Reuters that the cost of building the reserve, procuring the gas and injecting it into storage is estimated at between €1.2 billion and €1.5 billion ($1.4 billion–$1.7 billion), to be spread across 2027 and 2028.

The source added that annual operating costs are projected at between €150 million and €180 million, and that the plans are expected to receive cabinet approval in mid-August.

By Tamilla Hasanova