Germany reaches 95% natural gas storage target ahead of schedule

Bloomberg

Germany met a crucial natural-gas storage target more than two weeks ahead of plan, but the regulator warned that wasn’t enough to guarantee supplies during the coldest months.
Gas storage in Europe’s biggest economy is now on average 95% full, ahead of a November 1 deadline, according to the Economy Ministry. Germany was the EU country most reliant on flows from Russia and policy makers set an even higher target than the European Union to shore up supplies.
While the strategy of appealing to industry and citizens to cut back demand to prevent rationing later in winter appears to be paying dividends for now, a colder-than-normal winter could disrupt economic output and homes might not get enough fuel to keep warm.
The fuel held in giant caverns and tanks helps absorb supply swings and provides 25% to 30% of Europe’s winter consumption.
Supplies from Russia, the region’s biggest exporter began to dwindle last year already. Flows on the Nord Stream pipe were cut this summer and now the direct link to Germany is halted indefinitely after several blasts damaged it in an act of sabotage.
Temperatures 0.7 degrees Celsius warmer-than-usual last week led to people using about 30% less gas than a year earlier, according to data from the German grid regulator. Temperatures are forecast to dip next week before climbing back above the 30-year average,
according to weather data on Bloomberg.
“With Russian gas transit through Ukraine continuing and winter being relatively mild, Europe has a chance of getting through winter 2022/23 with some difficulty but still relatively unscathed,” said Katja Yafimava, senior research fellow at the Oxford Institute for Energy Studies. “However, a cold winter – especially if sets in early – would significantly undermine this proposition.”
In order to avoid a gas emergency in winter, Germany needs to increase gas imports, Mueller said. The government is chartering five floating LNG terminals and at least two will be ready in time for winter. Gas consumption must fall by at least 20%, he said.