VNG sees stable supply despite low gas storage levels

Despite comparatively low filling levels in German gas storage facilities, the East German energy company does not currently see any acute risk to security of supply. "VNG continues to consider the supply situation to be stable," the company said in response to an inquiry. The storage facilities fulfill their function in the winter season, "they secure the supply in times of high demand and make gas available at short notice".

Early pressure on the next storage year

The VNG storage facilities are currently around 36 percent full, with a good 32 percent nationwide (as of February 1). At the same time, developments are being monitored very closely. The storage facilities are already much less full than usual. "This could - in addition to the challenging market situation - make filling for the coming storage year even more difficult," the gas wholesaler admitted. However, the company does not see any acute risk, "as additional LNG volumes are available in principle and can be flexibly fed into the system".

The company is also confident about the coming weeks. "According to our current assessment, Germany will get through the winter adequately," it said. However, shortages will lead to higher prices, "even if they are still far below the crisis level in 2022".

Long-term supply contracts and LNG imports play a key role in security of supply, according to VNG - especially when storage levels are low. "Long-term supply contracts, for example with Norwegian producers, also ensure predictable, reliable supply volumes and make a significant contribution to cushioning supply fluctuations and avoiding price peaks," the company explained. LNG offers additional flexible import volumes, while gas storage facilities remain "a central element of supply security" even when levels are low.

Calls for a strategic emergency reserve are getting louder

Calls for greater state provision are coming from the state capital. "Germany should create a strategic emergency gas reserve," said the SPD politician. In view of the fact that the storage facilities are only around one third full, the German government must take appropriate measures to avoid similar situations in future winters. In a world full of global uncertainty, Germany cannot afford to play it safe in terms of energy policy.

VNG, headquartered in Leipzig, says it operates four storage facilities: two in Bernburg (Saxony-Anhalt), one in Bad Lauchstädt (also Saxony-Anhalt) and another storage facility in Etzel in Lower Saxony.