Trading Hub Europe GmbH, the organization managing Germany’s natural gas market, is in “intensive discussions” with government officials to secure subsidies aimed at replenishing the country’s gas storage amid rapidly falling inventories and rising gas prices.
Torsten Frank, Managing Director of Trading Hub Europe, told Bloomberg in an interview on Tuesday that negotiations are ongoing with both the ministry and the regulator. He explained that once the subsidy plan is finalized, more detailed talks can begin about when the program will launch.
Since 2022, Trading Hub Europe has been tasked with ensuring Germany’s gas supply security.
Gas storage in Germany has been depleting at an unusually fast rate this winter, prompting concerns among German and other European market operators. High gas prices, particularly for the summer months when storage typically occurs, are discouraging traders and companies from restocking.
This situation has led several EU countries, including Germany, to explore government support to help refill gas inventories. The goal is to ensure that storage levels reach at least 90% by November 1, 2025, ahead of the next winter season.
Frank added that the subsidy would offer financial support to those involved in the refilling process. He stressed the importance of meeting the storage requirements: “The key point is that gas must be in storage by November 1. Not having gas according to the requirements is not an option.”
Meanwhile, Dutch TTF Natural Gas Futures, the benchmark for European gas trading, recently surged to its highest level since February 2023. The first significant winter in Europe since the 2022 energy crisis, with extended cold spells, has led to significant drops in EU natural gas stockpiles, now at their lowest levels for this time of year since the crisis.
As a result, gas prices in Europe are climbing. With much of the continent relying on LNG imports for its gas supply, industries have found it more cost-effective to burn oil and coal where possible, as these fuels are currently cheaper than gas.
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