Frankfurt (Germany) (AFP) - The German government on Wednesday ordered a state-owned company to increase gas reserves amid growing concerns about low storage levels ahead of the winter, citing "geopolitical risks" in light of the ongoing war in the Middle East.

Published on: 09/30/2026 - 15:00

The percentage of gas storage facilities in Germany is currently approximately 58% full, compared to an average of about 70% in the European Union, which is far below the levels required by law in the country with the largest economy in Europe in preparation for the winter.

A spokeswoman for the Ministry of Economy told AFP that Economy Minister Katharina Reiche "decided to direct the federal government-owned company SEFE... to increase natural gas storage."

She added, "The main reason for this step lies in the ongoing geopolitical risks."

Gas prices in Europe jumped to their highest levels in three years earlier this month, as conflict in the Middle East and the possibility of a near-total closure of the Strait of Hormuz roiled global energy markets.

The European continent, which relies heavily on energy imports, has worked to diversify its sources of supply widely since the cessation of Russian gas flows following the comprehensive Russian invasion of Ukraine in 2022.

However, the disruption of supplies from the Gulf region, and the resulting rise in global prices, represents a new challenge for European governments and companies.

It is noteworthy that the company SEFE, whose name means “Securing Energy For Europe,” was previously the German branch of the Russian energy giant “Gazprom,” but Berlin took over it and placed it under state ownership after the outbreak of war in Ukraine.

The company manages about a quarter of the total gas storage capacity in Germany.

The Ministry of Economy explained that SEFE will determine the size and timing of the increase in storage, noting that other companies are also expected to increase their reserves.

“The measures SEFE will take are also aimed at sending a clear signal to other companies,” the spokeswoman added.

Germany sets a goal of having its main storage facilities 80% full by winter, but several factors have led to levels falling below their usual levels this year.

Europe emerged from last winter with severely depleted reserves, and the sharp rise in gas prices following the war in the Middle East has increased the cost of refilling storage facilities.

Berlin plans to create a strategic gas reserve, starting in 2027, in order to reduce the risks resulting from any future shocks in the energy sector.

© 2026 AFP

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