Klaus Müller, head of the Federal Network Agency, expects higher gas prices in Germany in the medium term. “We are seeing a great deal of uncertainty due to the blocking of the Strait of Hormuz. That, in turn, means gas consumers and tenants should brace themselves for higher bills,” Müller told the news portal t-online. This is unavoidable. Currently, there are no signs that the situation in the gas market will ease permanently.
Müller emphasized that natural gas prices are currently nowhere near as high as they were in 2022 following the outbreak of the war in Ukraine. He also noted that, despite the conflict involving Iran, there is sufficient gas available on global markets. “We can always purchase supplies there, even if the cost has risen due to the conflict with Iran.”
The head of the Federal Network Agency called on gas traders to store more gas for the winter. Sufficient gas is available, he told t-online. “For that reason, I cannot imagine any gas trader wanting to explain to their customers that there isn’t enough gas for the winter simply because they failed to make adequate preparations.” He expects “gas traders to live up to their responsibilities.”
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According to the European gas storage platform (AGSI), gas storage facilities in Germany were 49.9 percent full on Monday. Across the EU, the fill level stood at around 61 percent. In early July, when levels were at 41 percent, the Initiative Energien Speichern (INES) stated that it was technically feasible to fill German storage facilities to 76 percent capacity by November 1. However, current price trends provided “scarcely any incentives to inject gas into storage,” thereby jeopardizing security of supply for the winter. INES is an association of German gas and hydrogen storage operators.
Author: AFP – ilo/pe
Sources: AFP Press Portal