Germany's Economy Ministry unveiled a plan on Tuesday to establish a state-owned strategic natural gas reserve, aiming to hold volumes equivalent to nearly 10% of the country's total storage capacity. The initiative, reported by Reuters, is expected to require up to $1.7 billion (1.5 billion euros) for construction and gas purchases in 2027 and 2028.
The reserve is designed to bolster Europe's largest economy against supply disruptions, particularly as it moves away from Russian pipeline imports. The gas stored would provide a critical buffer during peak demand or geopolitical crises, though specific capacity targets remain undefined.
Funding will cover both infrastructure buildout and the acquisition of natural gas for injection into storage sites. The project carries a timeline that stretches to the end of the decade, signaling a long-term commitment to energy resilience.
This comes as the country continues to pivot from Russian energy dependence following the war in Ukraine. Alternative trading partners like Norway and the U.S. have stepped in, but Berlin sees dedicated state-controlled reserves as an additional safeguard.
Critics argue the $1.7 billion price tag could escalate, and that maintaining a gas reserve may lock in fossil fuel infrastructure just as the EU accelerates renewable adoption. Environmental groups have also questioned whether such investments align with Germany's 2045 net-zero targets.