Germany and Italy Clash Over European Gas Prices and Storage Levels

Germany has rejected criticism from Italy that its recent efforts to buy and store natural gas are pushing up prices across Europe. Economy ministry spokeswoman Susanne Ungrad stated at a press conference on Friday that Germany firmly rejects the claim that procurement and storage by companies like SEFE are driving up costs. This response comes after Alessandro Noce, a senior official at Italy's energy ministry, blamed German stockpiling for pushing benchmark gas prices above €100 a megawatt-hour this week. Noce argued that prices would otherwise stay closer to €70.

Details

Late last month, German Economy Minister Katherina Reiche directed the state-owned energy company SEFE Securing Energy for Europe GmbH to buy and store natural gas. This move came after months of the German government insisting that low inventories were not a threat and resisting calls to step in. Meanwhile, Noce noted that Italy spent about €300 million on its own winter preparations by encouraging companies to keep gas in storage, and warned that Italy might now need to help cover any shortfall in Germany if the weather turns very cold. Ungrad also confirmed that Germany will miss its 70% gas storage target due on Sunday.

Context

Energy storage levels are vital for European countries as they prepare for high winter heating demand and try to avoid severe supply shortages. Disputes like this show how difficult it is for European Union nations to balance individual national costs and shared regional energy security during the cold months.