Germany orders state firm Sefe to store 8 TWh of gas as reserves drop below 58%

Directive to state energy company

German Federal Minister for Economic Affairs and Energy Katherina Reiche instructed state-owned energy company Sefe on Tuesday evening to inject additional natural gas into domestic storage facilities. The decision, coordinated with Chancellor Friedrich Merz, requires Sefe to procure and inject eight terawatt-hours of gas by 15 December. Total German storage capacity stands at approximately 247 terawatt-hours, according to industry association Initiative Energien Speichern. The eight terawatt-hours ordered by the ministry represent a targeted intervention rather than a full replenishment. Sefe retains operational flexibility to decide the exact timing and volumes of the purchases, which will be sourced through additional deliveries to avoid disrupting other market participants. A spokesperson for Sefe acknowledged the binding order from the government on Wednesday.

We confirm that Sefe has received instructions from the BMWE as representative of the shareholder to procure and store eight terawatt-hours of gas by 15 December.

Depleted reserves and market breakdown

German storage facilities are currently filled to under 58%, representing the lowest level for late September since records began in 2011. Storage levels stood at nearly 77% at the same point in 2025, while the average between 2017 and 2021 reached roughly 86%. Current projections indicate Germany may enter the winter heating season with storage facilities filled to at best 75% to 77%. Commercial suppliers typically purchase cheaper gas during the summer, store it, and resell it during the winter heating period at a profit. This seasonal price spread has collapsed because the ongoing war involving Iran has blocked the Strait of Hormuz, driving wholesale gas prices higher during the summer injection period. Consequently, commercial traders refrained from filling storage capacities, because summer purchase prices exceeded expected winter resale prices.

Policy shift and opposition criticism

The direct mandate follows weeks of debate regarding state intervention in energy markets. In early September, Reiche told the Bundestag that the government had prepared contingencies for every scenario but insisted the state must not intervene prematurely to avoid becoming a price driver. Sefe began buying gas in mid-September under what it then characterized as independent commercial decisions without ministry orders. Green Party energy politician Michael Kellner criticized the economic affairs ministry for insufficient crisis preparation and delayed action. The ministry rejected the accusations, asserting that monitoring mechanisms identified the need for intervention due to sustained geopolitical risks.

From the perspective of crisis prevention, this step is an important additional contribution to increasing the resilience of German gas supplies.

Regulatory mechanisms and storage targets

The mandated volume of eight terawatt-hours represents nearly one-fifth of the storage capacity at Rehden, Germany's largest facility, and provides enough energy to heat approximately 400,000 single-family homes for a full year. If market mechanisms fail to meet statutory targets, sections 35b and 35c of the Energy Industry Act permit further interventions through market area manager Trading Hub Europe. These provisions include withdrawing booked but unused storage capacities from private holders and conducting Strategic Storage-Based Options tenders, subject to ministerial approval. Statutory targets require specific facilities, including Bad Lauchstaedt, Frankenthal, Haehnlein, Rehden, Stockstadt, and Uelsen, to reach 45% capacity by 1 November, followed by minimum winter thresholds of 30% to 40% on 1 February.