Germany's Gas Storage Sits at 57%, but VNG Says Winter Supply Is Covered

Thanks to diversified import capabilities, Germany doesn’t face a gas supply shortage despite record-low levels of natural gas in storage sites, according to one of the biggest German gas importers, VNG. “Compared to 2022, the system is much more robust overall. We have more access to liquefied natural gas (LNG) and we have broadened our overall position in terms of sources of supply,” VNG’s chief executive officer Ulf Heitmueller told Reuters in an interview published on Monday.VNG imports natural gas from Norway and has recently signed deals to import gas from Azerbaijan and Algeria, diversifying its portfolio of suppliers after Russian pipeline gas stopped flowing to Germany following the Russian invasion of Ukraine. “We have set up our portfolio in such a way that we are able to meet our delivery obligations to our customers ‌even in the event of a cold winter,” the executive told Reuters. VNG in 2024 started procuring gas from Algeria, which has become one of the key sources of gas to Europe. This summer, the Leipzig-based German gas importer signed a new agreement with Algeria’s state energy firm Sonatrach to receive additional volumes of gas as of 2027. “Especially in a challenging market environment and against the backdrop of geopolitical, energy policy and regulatory conditions, a broad and resilient supply portfolio is essential. The agreement with SONATRACH is an important component for securing the long-term supply of our customers and increasing the diversification of our portfolio,” Heitmüller said in July. As of September 27, gas storage sites in the EU were only 70% full, per data by Gas Infrastructure Europe. Some major economies, including the biggest, Germany, have even lower-than-average gas stored so far this filling season. Germany’s vast storage, the world’s fourth-largest, is just about 57% full, which has prompted concerns about supply security if the coming winter turns out much colder than previous winters. By Tsvetana Paraskova for Oilprice.comMore Top Reads From Oilprice.comOil Moves Higher on Rekindled War FearsMiddle East Oil Exports Rebound to 12.8 Million BpdGoldman Warns Diesel Export Ban Would Send Gasoline Prices Higher