Europe’s gas storage crisis is worsening, but consumers can still protect themselves from high prices

Europe is heading toward winter with unusually low gas stocks in Germany, where storage facilities held 133 terawatt-hours at the beginning of September. That would cover only about one month of severe winter conditions, according to the warning expected from Germany’s gas storage operators’ association, INES.

Austria is in a stronger position. Its storage facilities contain more than 67 TWh, and the country’s strategic reserve further reduces the risk of a physical shortage during the heating season. The government bought 20 TWh of gas at the height of the 2022 crisis and set it aside for emergencies. That reserve alone covers more than a quarter of annual demand.

The security cushion comes at a cost, but the bill is expected to be lower than planned. The government recently extended the reserve through 2029. Annual storage costs were budgeted at 94 million euros this year and 117 million euros for each of the next two winters. Current data reviewed by Die Presse show that the Economy Ministry will actually pay 38.75 million euros a year to store the emergency reserve, saving taxpayers 156.5 million euros.

The savings came after the ministry changed the tender conditions and created a storage product designed specifically for the strategic reserve. Because the gas will remain available for a crisis, the government did not book additional injection and withdrawal capacity. “We are securing Austria’s gas supply for the long term while also using taxpayers’ money prudently,” Economy and Energy Minister Wolfgang Hattmannsdorfer said.

The running costs are only part of the calculation. Austria paid 3.7 billion euros for the 20 TWh purchased in 2022, when gas prices were extremely high. At the current wholesale price of about 71.5 euros per megawatt-hour on the Dutch TTF market, the reserve would be worth only around 1.4 billion euros if sold. The reserve can reduce the risk of physical scarcity, but it does not protect consumers from higher exchange prices.

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We are securing Austria’s gas supply for the long term while also using taxpayers’ money prudently.