Germany orders state firm SEFE to bulk up winter gas stocks amid Middle East conflict

Germany's gas inventories sit at about 58% of total capacity, far under the EU average of 70% and the legally required winter threshold. Economy Minister Katherina Reiche has directed the state-controlled SEFE to expand its natural-gas storage as a precaution against the escalating Middle East conflict. The decision follows a recent surge in European gas prices, spurred by disruptions in the Strait of Hormuz and the broader war in the region.

SEFE, formerly the German arm of Gazprom and now owned by Berlin, manages roughly 25% of the country's storage facilities and will determine the scale and timing of the top-up, with other firms expected to do the same. Germany aims for its main storage sites to reach 80% capacity before winter, but depleted inventories from the previous season and high refill costs have hampered progress. To further guard against future energy crises, Berlin intends to create a strategic gas reserve beginning in 2027. The announcement coincides with an EU proposal to delay new methane-emission rules to ease market pressure.