Germany Says No Gas Shortage Ahead, but LNG Costs Soar Amid Low Storage Levels
Economy / Finance

Germany Says No Gas Shortage Ahead, but LNG Costs Soar Amid Low Storage Levels

The German network agency and the federal government both say that a gas shortage is not expected for this winter. In a written response to a question from Green MP Michael Kellner, the Ministry of Economics emphasized that gas‑supply security remains assured even with lower temperatures, as reported by the Rheinische Post.

The gas‑storage level, as of 21 January, was only 39.7 %. The ministry noted that, on the world market, sufficient liquefied natural gas (LNG) is still available, although global demand has risen because of weather‑related factors. Demand from Asia has increased recently, yet the overall LNG supply is still growing, especially from the United States, according to State Secretary Gitta Connemann.

Price-wise, the ministry says that, despite the temperature decline in Europe, gas prices have stayed lower than at the start of the year. However, in recent days prices spiked to as high as €39 per megawatt‑hour. The rise is partly linked to weather forecasts that predict below‑average temperatures in parts of Europe and Asia. Market speculation has also amplified price volatility, the ministry added. Even with this recent jump, the current price remains well below the peaks reached during the 2024/25 winter, when prices once climbed to about €59 per megawatt‑hour.

The network agency’s initial reassurances were likewise echoed. Still, Green MP Kellner cautioned about the high and rising import costs for LNG. He stated that the government was thrown into this situation because the storage facilities are almost empty, forcing expensive imports. He called for new rules to prevent a repeat of the scenario. The former state secretary in the federal ministry of economics also highlighted the need for such regulations.