Latest news with #TradingHubEurope
Bloomberg
28-05-2025
- Business
- Bloomberg
Germany Sees High Bar for Gas Storage Intervention If Goals Missed
Germany sees a high bar for any intervention to support gas storage efforts this year, even if the country ends up missing its new legally-binding targets. If liquefied natural gas supplies keep arriving in the country by the start of November, it may not be appropriate for gas market manager Trading Hub Europe GmbH to step in to support injections, even if the nation's storage goals are missed, according to a memo by the economy ministry seen by Bloomberg. Effectively, Germany is aiming to have storage sites 70% full.
Reuters
25-02-2025
- Business
- Reuters
German gas hub, industry in talks about loosening storage rules, Uniper says
FRANKFURT, Feb 25 (Reuters) - Germany's gas hub Trading Hub Europe (THE) and industry representatives are in talks with the German government on loosening rules on the country's gas storage filling levels, a Uniper ( opens new tab official said on Tuesday. "We are talking to THE," said chief commercial officer Carsten Poppinga at an earnings press conference, adding that among the proposals under discussion was loosening storage targets of 90% to perhaps 80% by November 1. Speculation that Germany may ask the state-mandated THE to refill caverns with the help of subsidies had driven up European gas prices in recent weeks, prompting policymakers more flexibility in terms of filling requirements. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Reuters
12-02-2025
- Business
- Reuters
German gas event fails to deliver tender plans as storage levels slide
Summary Discussion at fair focused on possible auction products Process is subject to intense market talk Gas market manager THE must agree them with state bodies ESSEN, Germany, Feb 12 (Reuters) - Subsidised gas auctions in Germany to boost flagging underground storage caverns are still out of reach despite speculative hopes riding on a meeting with stakeholders organised by Germany's gas market manager at a trade fair. The lack of progress leaves Europe's largest economy with a looming question over its energy supply for the coming winter, as the country aims to conserve state funds ahead of a general election. "A tender is currently not being planned," read the text on the slides from Trading Hub Europe (THE), mentioning incentives for new storage injections in the summer had been discussed, but THE's state supervisors must specify and decide on them. THE's actions are of significant interest to the wholesale gas market, given that European next-month gas prices are near two-year highs on a combination of cold weather and global competition for supply. A reversal in seasonal price trends has made summer refilling less enticing, leading to heightened expectations that state-mandated THE will need to incentivise gas purchases to meet a 90% filling target by November, as stipulated by national and European laws. Germany has the highest gas storage capacity in Europe, but its sites are currently only 48% full, a significant decrease from the 72% recorded at the same time last year, according to data from Gas Infrastructure Europe (GIE).
Yahoo
11-02-2025
- Business
- Yahoo
Germany scrambles to refill gas stores as cold snap looms
Germany is scrambling to refill its gas storage tanks as Europe braces for a cold snap. The company in charge of managing the German gas market, Trading Hub Europe, said it was in 'intensive' talks about paying subsidies to utility firms to refill the country's storage facilities after supplies dropped below 50pc. It comes as the Continent prepares for freezing temperatures next week. German gas reserves are languishing at just two thirds of the level they were at a year ago. A blast of chilly Arctic air is expected to trigger extra demand for heating and electricity in Northern Europe. Across the European Union, official data showed that gas storage levels were at an estimated 48.5pc on Tuesday – the lowest level for this time of year since 2022, when Russia's invasion of Ukraine triggered a supply crunch. Germany, which has the biggest reserves of any country, was down to 49pc, compared to 72pc at the same point in 2024. Among the lowest on Tuesday were Belgium, where reserves stood at 36pc, the Netherlands at 33pc and Croatia and France both at about 30pc. While many analysts believe that these storage levels will be enough for Europe to weather the rest of the heating season, companies are under pressure to refill the tanks ahead of next winter. Under EU laws passed in 2022, utilities must fill up storage facilities to at least 90pc capacity by the beginning of November each year. There are also intermediary targets that companies must hit for February, May, July and September. Traders typically stockpile gas during the warmer months in preparation for the winter as prices tend to be lower. This year, utilities have more ground to make up as they replenish their gas stockpiles. This is because the colder temperatures this winter than in 2022 and 2023 have left storage levels lower than before. So-called 'dunkelflaute' periods of calm weather have also sent output from wind and solar farms plunging. At the same time, there are fears that Europe may have to compete with Asia for supplies of liquefied natural gas (LNG) as countries in the east stock up in anticipation of a hot summer and high demand for air conditioning. That has helped to push up the European benchmark gas price. This week, it reached a two year high. In the past year, the price has steadily increased from around €25 (£21) per megawatt hour to about €57 per megawatt hour on Tuesday. These high prices have made utilities reluctant to refill their facilities so far, prompting countries such as Germany to consider providing extra incentives – an idea some have blamed for stoking prices further. On Tuesday, BNP Paribas argued the surges in the gas price 'look unjustified'. Aldo Spanjer, a Bank analyst, said in a note to clients: 'Looking at actual gas stocks, and comparing them against an average that excludes the outlier winters of the last two years, leads us to conclude we are in an average winter, pure and simple.' Assuming a more normal summer in 2025, he predicted Asian demand for air conditioning would be lower than last year and this would free up LNG cargoes to go to Europe. 'We forecast Europe to not only get more LNG but also get it cheaper than is currently assumed,' Mr Spanjer added. He predicted the market 'would eventually settle down' but that prices would remain high for at least as long as traders were spooked by the prospect of further cold weather. Next week, temperatures in the UK and the rest of Northern Europe are forecast to plunge below zero, with freezing winds set to hit. In Norway, where some of the lowest temperatures are expected, the mercury in Oslo is expected to drop to -9C, which is around 6C colder than the seasonal average. In Berlin, meanwhile, temperatures could drop to -7C on Monday, nearly 5C lower than normal. Sign in to access your portfolio
Yahoo
11-02-2025
- Business
- Yahoo
Germany scrambles to refill gas stores as cold snap looms
Germany is scrambling to refill its gas storage tanks as Europe braces for a cold snap. The company in charge of managing the German gas market, Trading Hub Europe, said it was in 'intensive' talks about paying subsidies to utility firms to refill the country's storage facilities after supplies dropped below 50pc. It comes as the Continent prepares for freezing temperatures next week. German gas reserves are languishing at just two thirds of the level they were at a year ago. A blast of chilly Arctic air is expected to trigger extra demand for heating and electricity in Northern Europe. Across the European Union, official data showed that gas storage levels were at an estimated 48.5pc on Tuesday – the lowest level for this time of year since 2022, when Russia's invasion of Ukraine triggered a supply crunch. Germany, which has the biggest reserves of any country, was down to 49pc, compared to 72pc at the same point in 2024. Among the lowest on Tuesday were Belgium, where reserves stood at 36pc, the Netherlands at 33pc and Croatia and France both at about 30pc. While many analysts believe that these storage levels will be enough for Europe to weather the rest of the heating season, companies are under pressure to refill the tanks ahead of next winter. Under EU laws passed in 2022, utilities must fill up storage facilities to at least 90pc capacity by the beginning of November each year. There are also intermediary targets that companies must hit for February, May, July and September. Traders typically stockpile gas during the warmer months in preparation for the winter as prices tend to be lower. This year, utilities have more ground to make up as they replenish their gas stockpiles. This is because the colder temperatures this winter than in 2022 and 2023 have left storage levels lower than before. So-called 'dunkelflaute' periods of calm weather have also sent output from wind and solar farms plunging. At the same time, there are fears that Europe may have to compete with Asia for supplies of liquefied natural gas (LNG) as countries in the east stock up in anticipation of a hot summer and high demand for air conditioning. That has helped to push up the European benchmark gas price. This week, it reached a two year high. In the past year, the price has steadily increased from around €25 (£21) per megawatt hour to about €57 per megawatt hour on Tuesday. These high prices have made utilities reluctant to refill their facilities so far, prompting countries such as Germany to consider providing extra incentives – an idea some have blamed for stoking prices further. On Tuesday, BNP Paribas argued the surges in the gas price 'look unjustified'. Aldo Spanjer, a Bank analyst, said in a note to clients: 'Looking at actual gas stocks, and comparing them against an average that excludes the outlier winters of the last two years, leads us to conclude we are in an average winter, pure and simple.' Assuming a more normal summer in 2025, he predicted Asian demand for air conditioning would be lower than last year and this would free up LNG cargoes to go to Europe. 'We forecast Europe to not only get more LNG but also get it cheaper than is currently assumed,' Mr Spanjer added. He predicted the market 'would eventually settle down' but that prices would remain high for at least as long as traders were spooked by the prospect of further cold weather. Next week, temperatures in the UK and the rest of Northern Europe are forecast to plunge below zero, with freezing winds set to hit. In Norway, where some of the lowest temperatures are expected, the mercury in Oslo is expected to drop to -9C, which is around 6C colder than the seasonal average. In Berlin, meanwhile, temperatures could drop to -7C on Monday, nearly 5C lower than normal. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
