Germany plans €1.5 billion strategic natural gas reserve

Germany is planning to allocate €1.5 billion to establish a strategic natural gas reserve with a capacity of 2.3 billion cubic meters, AzerNEWS reports, citing Reuters.

The reserve is intended to safeguard the country's energy supply in emergency situations, including potential acts of sabotage targeting critical energy infrastructure or severe shortages in the global natural gas market.

The Federal Ministry for Economic Affairs and Energy is currently preparing the proposal, which could receive government approval by mid-August, according to the report.

The planned reserve would amount to approximately 2.3 billion cubic meters, equivalent to about 10% of the total capacity of Germany's underground gas storage facilities.

Estimates suggest that purchasing the gas and injecting it into storage facilities during 2027 and 2028 will cost between €1.2 billion and €1.5 billion. Annual maintenance and storage expenses are projected to range from €150 million to €180 million.

The initiative is part of Germany's broader efforts to strengthen its energy security and improve resilience against potential supply disruptions.