German gas storage operators demand cost reductions to boost reserves

The Initiative Energien Speichern (INES), representing over 90 percent of Germany's gas storage capacity, has proposed an action plan to increase gas storage levels ahead of the 2026/27 winter season. The association argues that current market conditions do not provide sufficient economic incentives for filling storage facilities, noting that operators can face losses of approximately 3.14 euros per megawatt-hour when injecting gas.

To address this, INES is calling for three short-term measures: the abolition of the conversion levy, the removal of grid fees at storage connection points, and the provision of subsidized state loans to lower financing costs for stored gas. These steps are estimated to reduce storage usage costs by about 1.16 euros per megawatt-hour.

As of late August, German gas storage levels were at approximately 53.3 percent. While injection rates have recently accelerated, traders and suppliers have booked 76 percent of capacity for the upcoming winter, which is below the legally required 80 percent per facility. Federal Economic Minister Katherina Reiche has rejected state intervention, stating that the ministry sees no signs of a gas shortage due to Germany's new liquefied natural gas (LNG) import terminals.