(Bloomberg) — Germany pushed back against Italian criticism that last-minute efforts to replenish natural gas inventories are driving up prices across Europe.
“We firmly reject the accusation that the procurement and storage of natural gas, for example through SEFE, which is one of the Italian accusations, that this would drive up European gas prices,” Economy ministry spokeswoman Susanne Ungrad said at a press conference Friday.
The response follows comments from Alessandro Noce, a senior official at Italy’s energy ministry, who blamed recent German stockpiling efforts for helping push benchmark gas prices above €100 a megawatt-hour this week. Noce argued prices would otherwise be closer to €70.
The dispute highlights growing tensions over how the costs of Europe’s energy security are shared as the region heads into winter. Germany’s storage sites are about 62% full, compared with 91% in Italy and an EU average of 75%. Political friction risks intensifying if colder weather tightens supplies and causes prices to spike further.
Late last month, German Economy Minister Katherina Reiche instructed state-owned energy company SEFE Securing Energy for Europe GmbH to procure and store natural gas, after months of insisting unusually low inventories didn’t pose a threat to energy security and resisting calls to intervene.
Noce said that while Italy had spent about €300 million on its own winter preparations, encouraging companies to keep gas in storage, it may now have to help cover any shortfall in Germany if the winter is particularly cold.
Ungrad also acknowledged that Germany will not reach its 70% gas storage goal that is due on Sunday.
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