Germany's Largest Gas Storage Facility at 2% Capacity, Raising Winter Supply Concerns
Germany's largest gas storage facility in Rehden is currently at a mere two percent capacity, raising concerns about winter gas supply. This cavern storage facility, with a volume of up to 800,000 cubic meters and heights between 50 and 500 meters, is typically used to balance short-term, high demand fluctuations due to its quick fillability.
The Rehden facility, a pore storage site, is one of Germany's 47 gas storage facilities, including 31 cavern storage facilities like itself. However, its operation has become uneconomical, leading to its current low capacity. Federal Minister of Economics Katharina Reiche (CDU) has suspended the alarm phase in the Gas Emergency Plan due to this situation.
Market participants have been betting on political intervention to fill storage facilities during the summer to alleviate winter shortage fears. Despite this, the Rehden facility, Germany's largest, remains barely filled due to both physical and market economic reasons.
Germany is planning to develop fast-filling gas port facilities near LNG landing points to enhance gas distribution infrastructure and improve supply security. Meanwhile, gas traders and suppliers can rent space in storage facilities to store purchased gas. However, the future of the Rehden facility remains uncertain, with its operation deemed uneconomical.
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