German minister plans market incentives to boost gas storage, source says
XLE•Storage commitments and supply concerns
- The government has also agreed with state-owned energy companies Uniper UN0k.DE and SEFE that they will make fuller use of their storage capabilities, the source said.
- Politico reported that Reiche's ministry aimed to decide on the matter by Sept. 21.
- Germany's gas storage sites were around 53% full in early September, the lowest level for the time of year since records began 15 years ago, according to storage association INES.
- INES warned last week that an exceptionally cold winter could lead to supply shortfalls as early as January.
- SEFE said it would be issuing a statement shortly, Uniper declined to comment.
Germany weighs market incentives for gas storage
BERLIN, Sept. 16 (Reuters) - German Economy Minister Katherina Reiche plans to use market incentives to encourage traders to keep more gas available this winter, while avoiding direct state gas purchases, amid concerns over supply, a government source told Reuters.
- A planned autumn tender for Long Term Options, or LTOs, will be increased by an as yet undetermined volume of gas, the source said.
- LTOs allow Trading Hub Europe, Germany's nationwide gas market coordinator, to secure gas deliveries from traders for potential future use.
