The German government’s budget committee has approved a €15 billion loan to gas market area operators to purchase supply for storage, the economy ministry said in a statement.
The German government’s budget committee has approved a credit line worth €15 billion to gas market area operators to purchase supply for storage, the economy ministry said in a statement.
“[Gas market area operators] will thus receive the liquidity it needs, in particular to be able to purchase gas and fill it into storage facilities. The loan is secured by a guarantee from the federal government,” it added in a statement.
The money was urgently needed to fill storage facilities by winter, the ministry said, with the country typically reliant on Russia for more than 50% of its gas supplies. The plan for the credit line was unveiled on Sunday, shortly after Russia reduced gas flows to Germany amid heightened tensions between the West and Moscow over the war in Ukraine.
German gas storage facilities were last seen 58.7% full, data from Gas Infrastructure Europe showed, with levels having to reach 80% by 1 October, followed by 90% on 1 December, according to new legal requirements. However, the targets must be met by all storage facilities individually, the ministry said.
Latest storage levels fluctuated between 8.7% at the Wolfsberg underground facility (4.1 TWh capacity) and 99.2% at Etzel (2 TWh capacity). Germany’s largest gas storage facility Rehden (43.7 TWh capacity), formerly controlled by Russia’s Gazprom, showed a level of just 13.1%.
Gas market area operators can use the credit line from the state-owned KFW Bank to purchase gas itself or procure it through tenders.