As of: 03/25/2022 16:47
Filling levels for gas storage tanks are to be re-regulated – Bundestag decided: Specifically, relevant operators are to be required to gradually fill storage tanks to 90 percent by December 1 each year.
In the future, gas storage facilities in Germany should always be sufficiently filled. The Bundestag approved the relevant law. The specifications are intended to secure the gas supply and limit price fluctuations. Government factions, the Union and the Left Party voted in favor of the bill, the AfD abstained.
According to it, gas storage in Germany must be gradually filled to 90 percent. until December 1. The fill level should reach 65 percent by August 1 and 80 percent by October 1. On February 1 of the following year, the minimum filling quantity of 40 percent again applies. In the future, users of gas storage facilities will have to fill the capacity they have reserved, otherwise they will be withdrawn. The law is limited until April 2025. The Ministry of Economy is to assess the implementation by mid-December this year, and the effects by April 2023.
The law is also a response to Russia’s war with Ukraine and turbulence in gas prices. The level of landfilling was historically low this winter, according to the Ministry of Economy. This applies in particular to the warehouses of the Russian state-owned enterprise Gazprom. This situation cannot be repeated next winter.
Lowest values in the filling levels
According to the Federal Ministry of Economy, Germany has by far the largest natural gas storage capacity in Central and Western Europe, amounting to 24 billion cubic meters. However, this winter, the filling level of the gas storage tanks reached its lowest level.
Especially in Germany, the German gas storage facilities belonging to the Russian company Gazprom were not sufficiently filled before the onset of winter. According to the Ministry of Economy, the competent authorities have not been able to intervene so far due to the extensive liberalization of the gas market. That is changing now.
The gas storage industry sees many legal dangers
The new regulations pose significant financial, legal and operational risks to the gas storage industry. The Energy Storage Initiative (INES) has criticized that the changes will subject the previously liberalized gas storage market to strict regulations with far-reaching consequences. INES Managing Director Sebastian Bleschke said that the act on gas storage introduces regulations that make gas storage unattractive for market participants.
Union: The time limit made approval easier
The deadline made it easier for the Union to approve the gas storage law in the Bundestag, said MP Andreas Jung (CDU). AfD politician Steffen Kotré accused Economy Minister Habeck of insufficient research into the possibility of extending the life of nuclear power plants.
SPD MP Bengt Bergt complained that Germany’s former dependence on Russian gas was based on “past mistakes”. In 2015, Gazprom “consumed” the largest gas storage facility in Germany; this was not seen as a problem at the time. “We were very wrong,” continued Bergt. With the law passed, Germany is now sending an important signal to Moscow.
German democracy is “strong, capable, swift and flexible”. Bergt admitted that alternatives to Russian gas are needed “as soon as possible”.
Habeck: Advances in Oil and Coal
And this is what the traffic light coalition is trying to do: according to federal economy minister Robert Habeck, Germany is “rapidly” reducing its dependence on Russian energy imports. By the middle of this year, “Russian oil imports to Germany are expected to be halved,” Habeck said in Berlin this morning. By the end of the year, the goal is ‘almost independence’ from Russian oil.
Dependency on carbon will also drop from 50 percent to around 25 percent in the coming weeks, Habeck said. In autumn, it will be possible to become independent from Russian hard coal.
“Two more winters are coming,” Daniel Pokraka, ARD Berlin, on dependence on Russian gas
Tagesschau 15:00, March 25, 2022
In the case of gas, the process takes slightly longer. Habeck reiterated that a complete embargo on Russian gas is currently not possible. “The economic and social consequences would still be too severe.” Nevertheless, there is progress with gas as well, but the process is “demanding”. However, it is possible to become “largely” independent from Russian gas “by mid-2024”. However, this is only possible with a strong development of renewable energy.