Credit line

Germany to provide 15 billion euro credit line to fill gas storage

The Astora natural gas depot, which is Western Europe’s largest natural gas storage, is pictured in Rehden, Germany March 16, 2022. REUTERS/Fabian Bimmer

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FRANKFURT, June 19 (Reuters) – Germany will provide an additional 15 billion euros ($15.8 billion) in gas purchase credit lines to replenish storage facilities, the agency reported on Sunday. dpa press release, citing a document from the Ministry of Economy.

The additional credit lines will allow German gas market operator Trading Hub Europe (THE) to fill storage levels faster, meeting a key strategic objective to ensure Germany can weather the winter in case of a total stoppage of Russian supplies.

However, the dpa report gave no indication of where the additional supplies were coming from.

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Filling gas storage facilities has become more difficult for Germany since Russia cut the capacity of the Nord Stream 1 gas pipeline by 60%, jeopardizing plans to increase storage levels to 80% by October and 90% by November.

Plans for the credit lines, which will be provided by state lender KfW (KFW.UL), have been passed through the German finance ministry and will be presented to the budget committee in the coming week, dpa reported.

The Economy Ministry confirmed details of the report when contacted by Reuters.

The network operator said on Saturday that German gas storage facilities had been slightly filled overnight despite a significant drop in Russian deliveries, but confirmed that the situation around gas supply remained “tense”. . Read more

($1 = 0.9526 euros)

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Reporting by Christoph Steitz and Andreas Rinke; Editing by David Holmes

Our standards: The Thomson Reuters Trust Principles.