Overview
- Germany confirmed on Tuesday that it will set up a government-owned strategic gas reserve to strengthen energy security and reduce the risk of winter shortages.
- Officials put the cost at up to €1.5 billion, with other reports estimating a range of €1.2–€1.5 billion, and said funding will come from a levy on gas consumers.
- Purchases will be spread over two to three years so buying does not push up market prices, and the first injection into storage is targeted for summer 2027.
- Domestic gas storage stood at about 42.9% on July 6 and Europe overall is running well below historical refill targets, which has driven the government response.
- Germany plans the reserve at roughly 10% of national storage capacity while expanding LNG imports, mostly from the United States, which could ease supply risks but raise consumer costs through the levy.