German Energy Regulator Head Calls for National Gas Reserve

Germany should consider setting up a strategic gas reserve to safeguard supplies in the event of external shocks, the head of the country's energy regulator has said.

Klaus Müller, president of the Federal Network Agency, told dpa that traders and gas suppliers currently ensure adequate supplies for industry and households, and that responsibility should remain primarily in private hands.

"But there can be external shocks," Müller said, adding that Germany needed a mechanism to respond quickly in such cases.

He said current safeguards relied mainly on legally binding storage filling targets, but warned they had proved to be a rather cumbersome instrument that can distort the market.

A strategic gas reserve could therefore be one possible solution, he said.

Support for the idea has also come from Stefan Dohler, chief executive of north-western German energy utility EWE, who proposed the creation of a national gas reserve earlier this month.

Speaking to dpa, Dohler said it was time to discuss which tools could ensure supply security during a crisis.

"The state could, for example, consider establishing a strategic gas reserve for Germany that at the same time preserves market integrity," he said, noting that countries such as Austria, France and Poland already operate such systems "for good reason."

Under current rules, most German gas storage facilities must be filled to at least 80% by early November and 30% by early February, requirements that are due to expire in March 2027.

The German Economy Ministry has said the existing storage requirements should be further developed.

In their coalition agreement, Germany's ruling parties pledged to introduce suitable measures to ensure a secure and more cost-efficient refilling of gas storage facilities.