Uniper CEO Warns Germany Faces Gas Storage Problem Next Winter
Concerns Over Germany's Gas Storage and Supply for Winter
Current Gas Storage Situation
FRANKFURT, May 28 (Reuters) - German state-owned utility Uniper has warned that the country's gas caverns are not being filled fast enough, its CEO said, calling for incentives to avoid a possible shortage in the next winter season.
• "Storage levels have been rising since March, but it's still far too slow," Michael Lewis told Frankfurter Allgemeine Zeitung
• Germany's gas caverns are currently filled at 30.64%, according to data from Gas Infrastructure Europe, compared with 38.65% a year ago
Impact of Global Events on Gas Prices
• Higher gas prices in the wake of the Iran war have made the storing of gas, which usually starts in spring months, less attractive
• "If we don't fill the gas storage facilities quickly, we'll have a problem next winter," Lewis said
Proposed Solutions and International Comparisons
Regulatory Models for Gas Storage
The French Regulatory Model
• Lewis argued in favour of the regulatory model practised in France, whereby prices are guaranteed by the regulator via so-called contracts for difference
The Austrian Strategic Gas Reserve
• The Austrian model of a strategic gas reserve was only the second-best option for Germany, Lewis said
Currency Exchange Rate
($1 = 0.8621 euros)
Reporting Credits
(Reporting by Christoph SteitzEditing by Madeline Chambers)
