Germany secures extra winter gas supplies as storage levels lag

BERLIN, Oct 23 (Reuters) - Germany is securing additional gas supplies for winter amid significantly lower storage levels, with contracts worth nearly €245 million ($274 million) awarded to ensure enough reserves are maintained on standby, Trading Hub Europe said on Friday.

• THE, the operator responsible for organizing the German gas market, said special tenders aimed at safeguarding supply for February and March 2027 alone cost about €107 million.

• That is in addition to the approximately €137 million for the standard tenders through which THE secures gas supplies each year to address potential grid bottlenecks.

• These contracts serve as a kind of insurance in case additional gas is needed. They are meant to offer an incentive for participating companies to keep gas in storage longer and potentially store additional volumes.

• As of October 21, German gas storage facilities were only 61.1% full, compared to 75.4% at the same time last year.

($1 = 0.8933 euros)

(Reporting by Holger HansenWriting by Miranda MurrayEditing by Joe Bavier)