Germany’s Uniper says it has filled 70% of its contracted gas storage

By Nora Buli

STAVANGER, Norway, Aug 24 (Reuters) – Germany’s Uniper has filled 70% of its reserved natural gas storage capacity despite wholesale prices over the summer providing few economic incentives in a market made more challenging by the war in Iran, its CEO said on Monday.

An inverted summer-winter spread, where summer prices are above those for winter in the wholesale market, mean there is a lack of incentive to store gas, Michael Lewis told Reuters after signing a gas supply deal with Norway’s Equinor.

“Now that doesn’t mean to say we haven’t stored any gas. We’ve filled around 70% of the gas storage that we’ve contracted,” Lewis said.

However, the price spread has moved in the right direction over the last few weeks, he added.

“So we’re in the market every day, we’re buying gas, we store it where we think there’s a right incentive to do so, and we will continue to do that,” the CEO said.

As of Thursday, German storage levels were at just over 50% of capacity, compared to 76% a year ago and around 62% in European Union countries, according to transparency platform AGSI.

Energy companies and traders usually store gas during the summer months, when prices are lower, but the Iran war has driven up prices, making the storing of gas less lucrative compared to selling it on the market.

Uniper on Monday morning signed a 30 terawatt hour (TWh) per year deal for pipeline natural gas imports from Norway with supplier Equinor starting from January 1, 2027, but it will not help with gas storage for this winter, Lewis said.

Europe can also count on liquefied natural gas (LNG) to supplement pipeline gas deliveries, but the closure of the Strait of Hormuz, through which 20% of global LNG supply used to pass, has lifted prices around the world.

“So of course, that’s a challenge. We need a diplomatic solution there, and we will do everything we can on our side to secure gas for our customers,” Lewis said.

(Reporting by Nora Buli, editing by Terje Solsvik)