Strategic Gas Reserve

AGGM was entrusted with the procurement and management of the Austrian strategic gas reserve by the amendment to the Austrian Gas Act 2011 (GWG) (Federal Law Gazette I No. 38/2022). Within the framework of a market-based, transparent, non-discriminatory and public tender procedure, 12.6 TWh of gas are to be procured from federal funds in order to increase the security of supply in the Austrian market areas East, Tyrol and Vorarlberg. The strategic gas reserve is to be held in storage facilities that can be used for direct exit to the East market area. The reserve for the market areas Tyrol and Vorarlberg can also be held in storage facilities which are connected to neighboring market areas.

AGGM established a subsidiary, the ASGM Austrian Strategic Gas Storage Management GmbH, for the exclusive purpose of performing these tasks.

The first tender for the procurement of the strategic reserve has already been completed. The tender conditions were published on the AGGM website on 10 May 2022. Due to the great interest shown by market participants, the registration phase, which was originally scheduled to end on 16 May 2022, was extended by two days. After the end of the bidding phase on 23 May 2022, 12 noon, following the evaluation of 189 bids submitted in the three product categories via ASGM's web-based bidding platform, award decisions were sent to bidders just 6 hours later.

Target for the procurement of the strategic gas reserve already met to a good extent in the first tender despite the difficult market environment

In addition to the three storage companies OMV Gas Storage GmbH, RAG Energy Storage and Uniper Gas Storage (7fields), 25 Austrian and international companies participated. A total of 7.7 TWh of storage capacity was procured for the provision of strategic gas reserves. These will be filled from 1 June 2022 so that, in addition to the gas volumes held ready by the market, 7.7 TWh of gas will be available from 1 November 2022 to secure the gas supply in Austria.

Most of the storage capacities and gas volumes procured were obtained with "Product 1 - Gas in Storage". Of the gas volume offered in "Product Category 3 - Commodity Baseload", only about 50 % could be awarded. The corresponding offers for storage capacities were not sufficiently available, especially in the western storage facilities. This is likely to indicate that the gas companies that have storage capacities are planning to use them themselves.

In any case, storage capacities were secured to a sufficient extent to enable withdrawal in the direction of the German market area Trading Hub Europe (more than 1 TWh). The availability of the strategic gas reserve for the market areas Tyrol and Vorarlberg is therefore also guaranteed.

The total costs for the procurement of the strategic gas reserve including storage costs until 1 April 2023 amount to around EUR 958 million. This results in an average price incl. costs for the storage capacities until 1.4.2023 of 124.50 EUR/MWh.

Any questions regarding the procurement process for the strategic gas reserve can be sent to the following e-mail address: gasreserve@asgm.at.

Registration for the AGGM newsletter ensures that we can actively inform interested market participants who plan to participate in the tender process for storage capacities and/or the supply of gas about the availability of new information on the procurement process.