All you need to know about the German gas market – Trading Hub Europe

Article by: Paul Pontenagel & Kamil Beczkowski

Due to its central role in the European Union’s energy landscape, the German gas market has been a hot topic in the industry over the last years, with renewed interest during E-World 2025, where Trading Hub Europe (THE) announced and discussed new initiatives to incentivize shippers to reach the EU-defined storage level of 90%. Among others, THE discussed partly waiving storage levies and the development of their newest product – the Strategic Filling Instruments (SBI), which are broken down further in this article. First, let us take a look at the structure of the German market and its role in the continent.

How is the German natural gas market structured?

Normally, European energy markets are regulated by one national regulatory authority (NRA), operated by one transmission system operator (TSO), and present multiple options for exchange access, as well as cross-border trading. In Germany, however, companies are allowed to participate in the operation of the transmission system and storage function, which has led to the creation of over 15 TSOs, and numerous storage operators.

The market is further regulated by the local NRA, Bundesnetzagentur (BNetzA) and can be traded on EEX, ICE Endex, and via brokers.

Who is Trading Hub Europe (THE)?

An additional authority can be found in the German market – the Market Area Manager THE - a cooperation between the 11 largest TSOs that operate in Germany. THE is responsible for balancing the gas supply across the country, operating the virtual trading point, and ensuring security of supply as part of the emergency plan which has been in place since 2022.

Who are Germany’s 15 gas TSOs?

The German natural gas market has the most complex infrastructure on the continent, because companies can participate in the operation of the transmission system on the market. The 11 largest operators that make up Trading Hub Europe are: bayernets, Fluxys, GASCADE, GTN, Gasunie, Natran (FKA: GRTgaz), Nowega, ONTRAS, OGE, terranets, and Thyssengas.

What are the cross-border options when trading German gas?

Germany’s gas market is interconnected with all neighboring countries on land (Switzerland, Austria, Czechia, Poland, Denmark, Netherlands, Belgium, Luxembourg, and France) and to Norway through the North Sea via multiple pipelines.

As a central player in Europe’s gas supply, large quantities of natural gas and LNG are transported in and out of the country toward the rest of the continent. In 2024 alone, 856 TWh of natural gas were imported into the country and 89 TWh were exported, according to numbers from BnetzA. ?

In addition, nearly 70 TWh of natural gas were imported via Germany’s LNG terminals in Mukran, Lubmin, Brunsbüttel, and Wilhelmshaven.

How many LNG terminals are there in Germany?

There are four state-owned floating LNG terminals in Germany (Brunsbüttel, Stade, and two in Wilhelmshaven), and two privately owned floating terminals in Lubmin. Three onshore terminals are planned to be launched by the end of 2027.

What role does Germany play in Europe’s natural gas landscape?

22% of the nearly 1150 TWh of available gas storage volumes in the EU are currently located in Germany, which makes the country vital to the stability of supply in the continent. Because of this, Germany is also one of the largest exporters of natural gas to the rest of Europe, a responsibility which has only recently been eased due to neighboring countries successfully diversifying their gas supply routes.

How was Germany affected by the energy crisis?

When the natural gas supply in Europe was severely disrupted in 2022, Germany, as the largest storage capacity holder, had to fill its gas storage caverns to secure the supply to the rest of the continent at unfavorable market prices. These costs were largely incurred by THE, and could not be recouped through the market, as the same gas was sold in the following seasons at an average of 30% of its original cost via the wholesale gas market:

“In 2022, THE purchased some 50 TWh of gas at an average price of approx. 175 EUR/MWh for injection into storage. Around 12.5 TWh of this gas was already sold in the winter of 2022/2023. The average selling price was around 77.50 EUR/MWh. The sale of the remaining gas began at the start of the winter of 2023/2024, and the volumes have now been sold in full, with the average selling price for all of the gas at around 48.50 EUR/MWh,” -- says THE.

To recover these costs, THE introduced a Gas storage neutrality charge in 2022, which has been adjusted twice a year since then. To date, this levy has been charged to household (SLM) and industrial (RLM) consumers, as well as at physical cross-border interconnection points (GüP), and at the virtual interconnection points (VIP). However, THE is working on eliminating this charge for transiting gas through the country: “The draft of the Third Act to Amend the Energy Industry Act provides for the gas storage surcharge to be levied only on SLP and RLM volumes from 1 January 2025.”

What is Germany’s new SBI product?

According to EU-wide regulation, all member states are required to fill at least 90% of their available storage capacity by November 1st each year in preparation for the cold season. To incentivize shippers to fill storage capacity during the summer months, THE is developing a new product – SBI (Strategic Filling Instruments).

The product is designed by the German government and regulators (BMWK and BNetzA, respectively) as a pure storage-filling product for shippers who inject volumes into any gas storage facility covered by the German Gas Storage Act before November 1st. The system is designed to offer a financial incentive (subsidy) to make injections despite potentially unfavorable summer/winter spreads so that the legally defined storage level targets can be met.

Please note that the SBI product is still under development. For up-to-date information on the topic, please consult THE’s website.

Conclusion

Germany’s gas market is a critical hub in Europe’s energy landscape, ensuring stability and security of supply across the region. With a well-developed, but complex infrastructure, including market zones, trading hubs, multiple TSOs and interconnection points, understanding how to access and operate within the market can be challenging. ?

Whether you’re looking to enter energy for the first time or expand your operations into Germany, we at Time2Market specialize in ensuring a smooth and efficient market entry. Get in touch with our experts to find out how we can accelerate your market access.

Please note that this article was originally published on Time2Market's website.