The The Federal Cabinet approved a draft law for a strategic gas reserve on 11 November 2026. The stockpile is intended to protect Germany against severe supply disruptions and, under the plans of the of the Federal Government, published on the same day. They show both increased participation in the is to be built up from 2027. It is ultimately to be financed through a levy on gas customers. The Bundestag still has to consider the proposal; the Cabinet’s approval has not yet created a reserve ready for use.
The plan provides for an additional 24 terawatt hours of natural gas. According to the Federal Government, this is equivalent to about one tenth of Germany’s gas storage capacity. If the most important import infrastructure were to fail, the quantity would secure nationwide supply for 30 days. This figure describes a specific crisis scenario and should not be taken as a general estimate of how long supplies would last in every possible situation.
The reserve is intended for exceptional events such as sabotage or attacks on infrastructure. It is to be used only when a gas emergency has been declared. According to the Federal Government, the Federal Network Agency would then be able to draw on the stockpile to avoid serious disruption to supply wherever possible. Federal Minister for Economic Affairs Katherina Reiche stressed that the stockpile was intended to provide security in crisis situations, not to protect against high prices.
The body responsible for building up the reserve is Trading Hub Europe which is responsible for Germany’s gas market area. The Federal Government aims to be prepared for the winter of 2027/28. Procurement of the full reserve volume is to be spread over three years wherever possible, to limit the impact on the market and prices. Gas purchases, transport and storage are initially to be bridge-financed with a loan from the development bank KfW .
Ongoing costs are to be passed on to customers via gas suppliers. The Federal Government estimates the additional charge at 0.03 to 0.05 cents per kilowatt hour. For private households, it gives an expected annual cost of around four to seven euros, depending on consumption. Citing the draft law, Reuters reported that a typical detached house would be charged an estimated 5.80 to 9.40 euros a year. These are estimates based on different consumption assumptions, not fixed bill amounts.
The draft law changes the arrangements for security of supply alongside existing gas storage facilities: According to the Federal Government, statutory filling requirements expire on 31 March 2027 and are not to be extended. They were introduced in 2022 after Russian gas supplies were cut off. The planned reserve is to remain separate from the regular market; gas companies will continue to be responsible for normal winter preparations and their supply obligations.
In addition, according to the Federal Ministry for Economic Affairs, the Federal Government is preparing winter preparedness obligations for suppliers. It first intends to push for a European legal framework for this. How these rules will be designed and how the reserve will change during parliamentary proceedings remains to be seen.
Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).