German minister plans market incentives to boost gas storage, source says

BERLIN, Sept 16 (Reuters) - German Economy Minister Katherina Reiche plans to use market incentives to encourage traders to keep more gas available this winter, while avoiding direct state gas purchases, amid concerns over supply, a government source told Reuters.

• A planned autumn tender for Long Term Options, or LTOs, will be increased by an as yet undetermined volume of gas, the source said.

• LTOs allow Trading Hub Europe, Germany's nationwide gas market coordinator, to secure gas deliveries from traders for potential future use.

• The government has also agreed with state-owned energy companies Uniper and SEFE that they will make fuller use of their storage capabilities, the source said.

• Politico reported that Reiche's ministry aimed to decide on the matter by September 21.

• Germany's gas storage sites were around 53% full in early September, the lowest level for the time of year since records began 15 years ago, according to storage association INES.

• INES warned last week that an exceptionally cold winter could lead to supply shortfalls as early as January.

(Reporting by Holger Hansen, writing by Rachel More, Editing by Rosalba O'Brien)