Torsten Frank, CEO of Trading Hub Europe (THE), stated that regional gas shortages during the winter are a possibility in Southern Germany, given the currently low gas storage levels. Speaking to Politico’s “Energy and Climate” newsletter, Frank noted that while a regional shortage is theoretically conceivable depending on the scenario, they have experienced such regional deficits in the past during specific winter periods.
Frank cautioned that meeting the mandatory German storage fill targets-70 percent by November 1st-is not guaranteed. He explained that the gas designated for storage must first be available in the market area and subsequently transported to the storage sites, making the process “tricky.” He admitted he could not assure that all factors would align perfectly, as there are numerous influencing variables.
Storage levels are particularly low in Southern Germany in facilities located at Wolfersberg, Inzenham-West, and Breitbrunn. However, the THE chief stressed that one should not automatically equate a relatively low storage level in the south with a projected crisis in Bavaria or Baden-Württemberg, as import options, such as transporting gas through Austria, are available.
Regarding potential state intervention, Frank kept open the question of whether Trading Hub Europe would undertake a government-mandated refilling of gas storage facilities, similar to what occurred in 2022. He stated that he could neither confirm nor rule out THE procuring gas under a state mandate this autumn. This decision hinges heavily on coordination with the Ministry of Economics and the Federal Network Agency. Although Frank stated that THE is continuously preparing for such a scenario, he acknowledged that should the order be issued, they would, of course, proceed with the procurement.
Currently, the Ministry of Economics appears to assess the situation as one that does not necessitate official intervention. While Frank noted that this assessment could change, he found it understandable that, at present, intervention is not considered absolutely essential.
