Wednesday, April 24, 2024
HomeBusinessGermany approves law mandating full gas storage before winter By Reuters

Germany approves law mandating full gas storage before winter By Reuters


Related stories

Transforming Spaces with Elegance and Functionality

In the region of indoor format, curtains play a...

What is Ultrasonic Technology?

At its coronary heart, ultrasonic generation is all approximately...

Dive Deeper into Penetration Testing

The significance of penetration testing companies is undeniable due...

Buying Real Estate: Cash Or Financing- New England Home Buyers

You’re ready to buy your first rental property. One...

The Luck of the Draw: Gambling Superstitions and Rituals from Across the Globe

Gambling is one of the most superstition-laden activities in...


© Reuters. FILE PHOTO: A general view of the WINGAS gas storage facility near the northern German town of Rehden January 7, 2009. REUTERS/Christian Charisius

By Vera Eckert and Markus Wacket

BERLIN (Reuters) – The Bundestag lower house on Friday approved legislation requiring Germany’s privately-operated gas storage facilities to be full at the start of the next winter, to try to avert shortages in the event of a halt in Russian gas imports.

The law requires facilities to be 65% full by Aug. 1, 80% full by October, when the heating season and the gas season for utilities and traders starts, and 90% by November.

Storage levels, currently at 25%, must be at least 40% in February 2023.

Germany’s gas market trading hub, Trading Hub Europe (THE), which is overseen by the country’s energy regulator, will be responsible for ensuring the thresholds are met by issuing tenders for traders.

The law allows THE to purchase gas via tenders using state funds in case of an emergency.

Chancellor Olaf Scholz’s government has been acting to cut Germany’s exposure to Russian energy imports after President Vladimir Putin began what he has called a “special military operation” in Ukraine on Feb. 24. Kyiv and the West say Putin launched an unprovoked war.

The law aligns with coordination at European Union level for member states to build up stocks and buy more gas from third countries.

In the four weeks since the invasion, Germany reduced its gas imports from Russia to 40% from 55%, Economy Minister Robert Habeck said on Friday.

See also  G-7 leaders mark VE Day stressing unity, support for Ukraine

Energy prices in Europe hit records even before the invasion. European countries accused the Kremlin of deliberately reducing the volumes of gas delivered through pipelines to historically low levels. Russia denied this and said it had met contractual demands.

In Germany, a third of gas storage belongs to Russia’s Gazprom (MCX:), whose facilities in Germany had lower levels of stored gas this winter than those operated by other companies.

If there is a risk of shortage, the law allows the national energy hub to use facilities that are empty or below the stipulated filling levels to store its own gas purchases.

Operators have criticised the plans, saying they interfere with the market and price signals.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

See also  Eyeshadow Boxes will raise the beauty of your product


Source link

Bellie Brown
Bellie Brown
Hi my lovely readers, I am Bellie brown editor and writer of I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting

Latest stories