German Economy Ministry spokesperson: Markets are liquid, we have no problem with the security of gas supply

German Economy Ministry spokesperson: Markets are liquid, we have no problem with the security of gas supply

Germany’s economy ministry reaffirmed confidence in the stability of gas markets and supply security, stating that no state intervention is currently necessary despite recent geopolitical tensions and fluctuations in liquefied natural gas (LNG) availability. A ministry spokesperson emphasized that Germany’s gas supply remains secure this winter, supported by diversified imports, sufficient storage levels, and reduced consumption compared to previous years.

The country has significantly expanded its energy resilience since implementing a three-stage emergency plan in 2022 to reduce reliance on Russian gas. New LNG terminals and supply agreements with Qatar, Oman, and Norway have diversified sources, while gas demand has fallen by 15% since 2022. Current storage levels exceed legal thresholds, and prices have stabilized near 32 euros per megawatt hour after a temporary cold-weather spike.

However, the ministry acknowledged heightened volatility due to Middle East conflicts, including a halt in Qatari LNG production and shipping restrictions in the Strait of Hormuz. In response, Germany reactivated a task force to monitor markets and coordinate potential measures, though Economy Minister Katherina Reiche stressed that intervention would only occur if "absolutely unavoidable" and cost-efficient. Analysts note that while global competition for gas supplies may drive short-term price increases, Germany’s diversified infrastructure mitigates risks compared to the 2022 crisis.

The government is also reviewing updated storage regulations and tools to protect critical infrastructure, underscoring its focus on long-term resilience without disrupting market liquidity according to ministry statements.