The German Ministry for Economic Affairs issued a statement on the 7th, confirming the government's plan to establish a national-level strategic natural gas reserve system. This initiative aims to address potential emergency energy supply crises and ensure national energy security.
According to the plan disclosed by the ministry, the strategic reserve is intended to have a capacity of 24 terawatt-hours (TWh), which represents approximately 10% of Germany's current total natural gas storage capacity. The preliminary costs for the project's construction, procurement, and initial gas injection are estimated to be between 1.2 and 1.5 billion euros (approximately $1.4 to $1.7 billion). The related funding will be raised through a surcharge levied on natural gas consumers. The German government plans to complete the first batch of gas purchases in phases over two to three years to minimize disruption to market prices.
The ministry emphasized that establishing this strategic reserve is designed to fortify the nation's energy security defenses and guard against extreme scenarios, particularly sudden risks such as deliberate attacks on critical energy infrastructure or severe global gas shortages. Since the onset of the Ukraine crisis and the ensuing geopolitical conflict in Europe, Germany has been accelerating the restructuring of its energy supply system to replace its previous reliance on Russian gas and is working intensively to address vulnerabilities exposed in its energy infrastructure.
Informed sources revealed that, in addition to the initial setup costs, the annual operational and maintenance expenses for the strategic reserve once operational are projected to be between 150 and 180 million euros. Based on the current implementation schedule, the planning proposal is expected to be submitted to the German federal cabinet for review and approval by mid-August of this year. The booking of the first storage capacities is slated to commence in the winter of 2026-2027, with the first round of gas injections scheduled to begin in the summer of 2027.