Why Germany's gas storage levels are so low

Germany's natural gas storage facilities are currently at a fraction of their capacity, with only 50.14% filled as of mid-August, marking the lowest level in several years. This is significantly lower than the same time last year, and much less than during 2023 and 2024 when Germany increased its contingency plans in response to Russia's war in Ukraine. The ongoing closure of the Strait of Hormuz, a critical energy chokepoint due to the Iran war, has led to Germany's gas storage facilities being barely more than half full.

Unlike many other European countries, Germany primarily relies on private energy trading firms to fill storage facilities, hoping for falling gas prices if the Iran war ends. However, European wholesale gas prices remain high, around €65 per megawatt-hour, nearly twice the level from the same period last year.

European governments have prioritized boosting gas storage levels ahead of winter and reducing consumer demand. Traders usually buy gas at low summer prices and store it for winter use. However, the high global gas prices and Iran war disruptions have reduced this incentive for early storage filling.

While Germany's gas supply is not considered secure by its Economy Ministry, it has built new LNG terminals on its North Sea and Baltic Sea coasts. Consumer groups warn of potential higher gas prices this winter and suggest consumers check if their contracts include a fixed price extending beyond the winter.