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Budget committee confirms 15 billion loan for gas storage

Report from the Federal Ministry for Economic Affairs and Climate Protection (BMWK)

22.06.2022

The budget committee was informed today that the federal government is providing the market area manager of Trading Hub Europe GmbH (THE) with a credit line of EUR 15 billion via KfW to ensure that the gas storage facilities can be filled.

THE thus receives the necessary liquidity to be able to buy gas in particular and channel it into storage. The loan is secured by a federal guarantee. In the current situation on the gas market, this financial security is urgently needed in order to fill the gas storage facilities until winter. The revised Energy Industry Act (EnWG), which has been in force since April 30, 2022, essentially provides that users of gas storage facilities in Germany have to fill the capacities they have booked. This is to avoid vacancies. If there is no filling, the operator of the gas storage facility will make capacities available to THE as the market area manager. THE is thus obliged to gradually fill the gas storage facilities up to 90 percent by November 1, 2022. A more specific ministerial regulation came into force on June 2, 2022 so that THE can act now if it becomes apparent that individual storage facilities do not meet the requirements due to low fill levels. In the past few weeks, storage in Germany’s largest gas storage facility in Rehden, which had historically low storage levels for months, was able to begin. As of now, Rehden is 12.29% full of the original 2%. Rehden is a first application of the new legal regulations. These can also be applied to other storage facilities with low levels. The targets of the law must be achieved per storage facility, not just on average.

About THE: Trading Hub Europe GmbH (THE) is a subsidiary of eleven long-distance gas network operators and operates the German market area as the market area manager. The main tasks of THE are balancing energy management, balancing group management and operation of the virtual trading point. In this way, THE exercises a statutory and legitimized monopoly task and, since the amendment to the Energy Industry Act (EnWG), has carried out measures to fill gas storage facilities as required.

Those:

Federal Ministry of Economics and Climate Protection (BMWK)

Keywords:
BMWK, budget committee, gas, gas storage, loan KfW, THE


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