German Government Announces State Gas Reserve Plan

Germany's federal government is moving ahead with a strategic gas reserve to strengthen energy security in extreme crises. The plan envisions a storage capacity of around 24 terawatt‑hours (approximately 24 billion kWh), enough to cover a 30‑day outage of the main import infrastructure such as the Dornum pipeline, or up to 40 days of LNG import loss.

The reserve will be funded not from the federal budget but via a new consumer surcharge, projected to be lower than the former gas storage levy. Estimated total costs for construction and gas procurement are €1.2‑€1.5 billion, with annual operating expenses of €150‑€180 million. Initial filling is targeted for the summer of 2027, with procurement spread over two to three years. A cabinet decision is expected in mid‑August, and the Bundestag could review the proposal by the end of September, aiming for the scheme to become effective on 1 January 2027.

The initiative, presented by the Ministry for Economic Affairs led by Katherina Reiche (CDU), seeks to prevent forced shutdowns of industrial customers and provide a time buffer for repairs or alternative imports during severe supply disruptions.