The decrease in natural gas prices has driven Germany's gas storage levels to an important milestone.

Traders have significantly increased their bookings at natural gas storage facilities in Germany, a sharp contrast to earlier this year when Germany's natural gas reserves were at their lowest level in three years as winter ended, and an unusual market structure made replenishing natural gas unprofitable. As of this week, over 70% of the available capacity of Germany's underground gas storage facilities has been booked, a significant threshold as it aligns with Germany's gas storage target before winter. The recent drop in natural gas prices has increased the profitability of natural gas storage, with traders injecting nearly 10 terawatt hours of natural gas into storage facilities last week, the largest seven-day increment since 2022. Ten traders who declined to be named stated that the risk associated with German gas storage actions has decreased, with six stating that Germany and the EU's gas storage targets are likely to be met ahead of the November 1st deadline. At the beginning of the year, there were concerns about the state of Germany's natural gas reserves. Traders were worried that the German government might have to intervene in the market, leading to significant price fluctuations, similar to what happened during the European energy crisis. However, with Israel and Iran agreeing to a ceasefire and summer natural gas prices plummeting at the end of June, remaining near their lowest levels this year, the work of replenishing reserves has been progressing smoothly. "People are more confident now," said Mirko Ivanda, Co-Director of Power and Gas at Onyx Commodities Switzerland AG, noting that liquefied natural gas imports are sufficient. Even if reserves end up lower than previous years, he does not believe it will have "disastrous" consequences. Since Russia restricted pipeline natural gas shipments in 2022, Europe's natural gas reserves have played a crucial role. However, at the beginning of 2025, due to lower wind power generation during the winter heating season, Europe's natural gas reserves substantially decreased, sparking concerns about soaring natural gas prices. German natural gas stocks increasing BloombergNEF estimates that if Germany continues to store natural gas at its current rate, reserves will reach 83% by November 1st. Consultancy firm Energy Aspects Ltd. predicts reserves will be around 80% to 85%. Currently, reserves are at 55%, and booked capacity is not yet full. A key factor in the recent increase in bookings is the widening discount of summer natural gas prices relative to winter contracts during the market downturn. As of last week, the benchmark natural gas futures price for delivery in August in Europe was about 2.5 per megawatt hour lower than the February 2026 contract, marking the largest price difference this year. This price difference makes summer stockpiling more attractive to traders. Erisa Pasko, a senior analyst at energy analysis company Erisa Pasko, stated that if the price difference is around 2 to 2.5, most storage sites in Germany could be profitable. Price differences make natural gas storage more profitable Germany's natural gas prices are also higher than the European benchmark prices, attracting more natural gas supply to the country. Despite signs that reserves are becoming more adequate, traders may still closely monitor risks of summer heatwaves and maintenance work in major supplying countries like Norway. An early cold spell during the heating season could also trigger panic. The German Gas Storage Operators Association stated that having reserves at 70% is still insufficient to ensure a secure supply during extremely cold weather. While officials suggest that intervention measures are unlikely, one of Germany's major operators, EWE AG, urged the German government last week to remain open to intervention. CEO Stefan Dohler of EWE stated that the risk of inadequate replenishment of reserves still "genuinely exists."