Tender to help fill gas storages ahead of winter

Under the European Security of Supply Regulation, EU member states with underground gas storage facilities are required to fill them to at least 90 percent before the heating season begins. This storage requirement was introduced as part of the EU’s joint response to Russia’s invasion of Ukraine and aims to strengthen overall European energy security. At the end of June, Denmark's gas storage facilities were filled to 33 percent.

On behalf of the Danish government, the Danish Energy Agency has initiated the work on a tender to help boost gas storage levels ahead of winter. Gas Storage Denmark will be responsible for managing the tender process.

“The overall supply situation is good. However, Denmark is currently below the EU targets, and we therefore have an obligation to act. There is gas available on the market, and the tender is intended to help ensure that more of this gas is stored in Danish facilities. This will contribute to security of supply throughout the winter,” says Peter Christian Baggesgaard Hansen, Deputy Director General of the Danish Energy Agency.

Denmark is well connected to neighboring countries and can receive gas from Norway via Baltic Pipe. Gas production from Danish fields in the North Sea, when fully operational, exceeds the annual national consumption. In addition, domestic biomethane production accounted for 38 percent of total Danish gas consumption last year. Denmark’s access to gas is therefore good, and the security of supply is stable. However, a larger storage volume will make Denmark’s gas supply security more robust over the winter.

The tender is planned to be carried out in September. Here, gas traders can commit, against payment, to storing a specified volume of gas by a defined date. Tender documents will be made available on the EU tender portal. All tender material will be in English.

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FACTS

• At the end of June, Denmark’s two underground gas storage facilities were 33 percent full. The EU interim target for Denmark was 60 percent by July 1. The target for November 1 is 90 percent.
• Danish storage capacity accounts for about 1 percent of the EU’s total gas storage capacity. On average, EU storage facilities were around 58 percent full at the end of June. This is roughly in line with previous years.
• The Danish Energy Agency has delegated the tender process to Gas Storage Denmark, which operates the country’s two underground gas storage facilities. Gas Storage Denmark is a subsidiary of the state-owned energy company Energinet.