Germany Urges State-Owned Energy Company SEFE to Boost Gas Reserves as Winter Nears

Deep News17:20

The German government has directed state-owned energy company SEFE Securing Energy for Europe GmbH to procure and store natural gas in the coming weeks.

Given the unusually low current inventory levels, the region is under pressure to build up reserves before winter arrives.

SEFE said in an emailed statement that it has been instructed to inject 8 terawatt-hours of natural gas into storage facilities by December 15.

A spokesperson for Germany's Economy Ministry described the move as "an important supplementary measure to enhance the resilience of Germany's natural gas supply."

Since the outbreak of the Iran war, the Strait of Hormuz has been almost completely closed, disrupting roughly one-fifth of global liquefied natural gas shipments and forcing buyers in Europe and other regions to scramble for alternative supplies.

The Economy Ministry spokesperson said Economy Minister Katherina Reiche has been closely monitoring developments in the natural gas market and has prepared response measures for various scenarios.

The ministry said Reiche made the decision after consultation with German Chancellor Merz.

The spokesperson said the primary reason for implementing this measure is lingering geopolitical risks.

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