Germany Weighs Bigger Gas Storage Auctions as Inventories Hit 15-Year Low

Germany is considering expanding a key market incentive to encourage traders to raise gas storage levels before the 2026 winter. As Europe's largest economy, Germany has the world's fourth-largest gas storage capacity, but according to Gas Infrastructure Europe, its storage facilities were only 56% full as of mid-September 2026, the lowest level in at least the past 15 years.

The Middle East crisis has driven gas prices sharply higher, deepening the market's spot premium structure, in which near-term contract prices exceed forward contract prices. This structure reflects market concerns about immediate supply and has dampened traders' willingness to stockpile gas for later delivery.

In response, Germany prefers to avoid direct state gas purchases as it did in 2022, and has agreed with state-controlled energy companies Uniper and SEFE that they will inject more gas into their respective storage facilities. The German government also plans to expand the scale of the autumn tender under an existing market tool, long-term options (LTO); the additional volume has not yet been determined.