Germany orders SEFE to buy more gas to shore up winter reserves
UNG•Germany ordered state-owned SEFE to procure and store 8 TWh of natural gas by December 15. The volume is less than 1% of the country’s annual gas consumption of 864 TWh last year.
1. SEFE to buy gas
Germany instructed state-owned SEFE, short for Securing Energy for Europe, to procure and store 8 TWh of gas by December 15. Economy Minister Katherina Reiche ordered the purchases in coordination with Chancellor Friedrich Merz because of ongoing geopolitical risks, her ministry said.
2. Storage and market context
Germany’s gas storage facilities are about 58% full. The ministry said other market participants are expected to meet their winter storage obligations, and that SEFE’s steps are intended to send a clear signal to other companies. European gas prices have more than doubled this year after the Iran conflict disrupted a major LNG supply route through the Strait of Hormuz.
