Germany's Gas Reserves at Historic Lows Ahead of Winter

Gas storage operator association INES has reported that Germany's gas reserves are at historically low levels, which could lead to shortages in the event of a cold winter. As of early September, reserves were at 53% of capacity, the lowest for this time of year in the past 15 years. INES indicated that levels could be increased to 77% by November, but only with a significant increase in gas input. They noted that while 77% capacity would suffice under normal winter conditions, it would not be adequate during extremely cold temperatures. The association attributed the low storage levels to reduced profit margins caused by ongoing conflicts in Russia and Iran, which have diminished the economic incentives for traders to fill reserves. INES has called on the German government to lower storage fees to encourage more gas storage. In contrast, the Federal Ministry of Economy stated that there is no cause for alarm, citing new LNG terminals and pipeline deliveries from Norway as sufficient to address potential shortages. Additionally, the political landscape in Germany is shifting following the Alternative for Germany's (AfD) recent electoral victory in Saxony-Anhalt, which has prompted protests across the country. Chancellor Friedrich Merz has affirmed his intention to remain in office despite the AfD's success, which has raised concerns among many citizens. A YouGov survey indicated that 47% of respondents oppose collaboration with the AfD in forming a state government, while 38% support such cooperation. The AfD's Saxony-Anhalt branch has been classified as 'confirmed right-wing extremist' by Germany's domestic intelligence agency.