According to Politico, the European Union may face rising energy and heating costs this winter as the German government refuses to purchase gas with state funds to replenish underground gas storage (UGS).
Gas storage in Germany is only 48% full, while the entire EU is about 58% full, marking the lowest level in the last 15 years. Experts estimate that high prices and disruptions in supplies from the Persian Gulf have slowed the replenishment of storage.
The German authorities state that the filling of UGS should be ensured by private companies and traders, as state purchases could further increase gas prices.
S&P Global expert Laurent Rusecas noted that if the winter is colder than usual and supplies through the Strait of Hormuz continue to face difficulties, gas prices in Europe may continue to rise.
Experts also warn that even with 76% filling of Germany's gas storage, a gas shortage could occur, affecting not only Germany but also Austria, Italy, Denmark, and Switzerland.
