Germany's economy ministry is drawing up plans for a state strategic natural gas reserve to be used in emergencies and which will cost up to 1.5 billion euros ($1.72 billion), a source familiar with the matter told Reuters, BTA reported.
By creating the gas reserve, the government aims to provide protection in extreme situations, such as sabotage of critical energy infrastructure or a serious global gas shortage, the source said.
According to the plans, which are expected to be approved by the German cabinet in mid-August, the state reserve will store about 24 terawatt hours (TWh) of gas, which is equal to just under 10 percent of the total capacity of gas storage facilities in Germany.
The costs of building the reserve, purchasing gas and injecting it The storage quantities are estimated at between 1.2 and 1.5 billion euros, distributed in 2027 and 2028. The annual operating costs are estimated to be between 150 and 180 million euros.
Financing for the state strategic reserve will be provided by charging consumers of natural gas in the country.