BERLIN, Nov 21 (Reuters) – Germany wants to give an additional 5 billion euros’ ($5.1 billion) worth of credit to the nationwide gas market trading hub to enable forward sales from gas storage facilities, according to a finance ministry document seen by Reuters.
That brings the total amount of credit for Trading Hub Europe (THE) to 20 billion euros, says the document seen on Monday.
THE is a subsidiary of the country’s gas network operators and is responsible for the gas market in Germany. Gas purchases were already being made through THE with loans secured by the federal government in order to fill the storage facilities in Germany.
The finance ministry, in coordination with the economy ministry, wants to secure the credit increase to serve as a security deposit to enable THE to place stored gas volumes for sale on the futures market over the winter, according to a note on the document from the economy ministry.
According to the note, the economy ministry had ordered in late September that 35% of stored gas volumes be sold via the futures market and 35% via the spot market this winter. Beyond this winter, 30% of the volumes are to remain in storage.
($1 = 0.9757 euros)
Reporting by Holger Hansen,
writing by Miranda Murray;
Editing by Rachel More and Emelia Sithole-Matarise
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