Germany must do more to boost gas reserves as storage levels hit record low, lobby group says

FRANKFURT, Nov 1 (Reuters) - Germany must review and improve its mechanism for filling its gas caverns, gas storage industry association INES said on Sunday, as storage levels in Europe's top economy remained at record lows ahead of the winter season.

As of October 30, gas storage levels stood at 61.35%, well below an 80% target Germany has set for November 1, raising fears about supply shortages even though Berlin has said there will not be any bottlenecks.

• "The failure to meet storage level targets shows that storage levels for coming winters must be guaranteed more rigorously," INES Managing Director Sebastian Heinermann said in a statement

• The main driver for lower storage levels has been the Iran war and its impact on prices, which has made filling caverns over the summer uneconomical

• "It is therefore right and important that the Federal Ministry for Economic Affairs is open to the introduction of an obligation on suppliers. We must now discuss specific options for the design of a storage obligation at the earliest opportunity, so that it can be enshrined in law without delay," he said

• INES has prepared a report together with gas grid operator association FNB Gas that it says will help inform the political process

• Germany on Friday rejected accusations from Italy that it had failed to fill its gas stores ahead of winter in order to reduce costs for its gas import companies to prepare them for privatisation

(Reporting by Christoph Steitz; Editing by Susan Fenton)