Germany says gas storage injections pick up as LNG market conditions improve

BERLIN, Aug 28 (Reuters) – The German government said on Friday that gas operators were actively filling storage facilities, citing improved price dynamics and weaker competition from Asia for liquefied natural gas cargoes.

German gas storage sites were 51.64% full, an economy ministry spokesperson told a regular government press conference, adding that operators had injected significant volumes in recent days.

“The winter-summer price spread – which was always the problem, as prices were too high – has improved a bit, which may be one factor,” the spokesperson said.

“Another factor is that the heatwave in Asia has subsided, meaning cargo shipments are no longer heading there but are instead being purchased here.”

Germany aims to have its storage caverns at 70% of capacity by the beginning of November – a target that energy lobby group BDEW described this month as achievable, though a challenge.

The government is closely monitoring the situation, the spokesperson said, adding that the ministry expects market participants to continue filling facilities.

“The market has always fulfilled this task and we continue to see that the market is functioning,” the spokesperson said.

However, the spokesperson cautioned against focusing solely on storage levels, saying a specific storage percentage did not by itself determine whether supplies could be considered secure.

“It is not about exactly reaching 70%,” the spokesperson said, adding that security of supply depended on a broader assessment that included Germany’s LNG import terminals and the ability to increase imports from western European countries.

(Reporting by Miranda Murray, Editing by Louise Heavens)