Strategic Gas Reserve

Between May and August 2022, ASGM conducted two market-based, transparent, non-discriminatory and public tender procedures for the procurement of the strategic gas reserve.

A total of 20 TWh of gas was obtained, of which 8.5 TWh came from non-Russian sources. These are available to secure Austria's gas supply from 1 November 2022. The Austrian federal government's goal was thus achieved in full.

The total costs of the two tenders amount to EUR 3.95 billion.

In the first tender procedure, 12.6 TWh of gas were to be procured from federal funds in order to increase security of supply in the Austrian market areas East, Tyrol and Vorarlberg. Despite the difficult market environment, 7.7 TWh of gas were obtained for the strategic gas reserve and the procurement target was met to a large extent.

A total of 189 offers in three product categories were submitted via the ASGM digital offer platform. 

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.

Most of the storage capacities and gas quantities procured were obtained in product category 1 "Gas in Storage". Of the gas volume offered in product category 3 "Commodity Baseload", only about 50 % could be awarded. The corresponding offers were not sufficiently available, especially in the western storage facilities. However, the availability of the strategic gas reserve for the Tyrol and Vorarlberg market areas was ensured by sufficient storage capacities enabling withdrawal in the direction of the German market area Trading Hub Europe (more than 1 TWh).

The average price for the procurement of the first tender of the strategic gas reserve including storage costs until 01.04.2023 is 124.50 EUR/MWh. This means that a total of around 1.05 billion euros was spent on the 7.7 TWh of gas procured.

Mit With the decree of 30 June (Federal Law Gazette II No. 262/2022)  the Federal Government decided to increase the strategic gas reserve by 7.4 TWh to a total of 20 TWh of gas. In order to diversify the sources of gas supply, the tender conditions stipulated that - depending on availability on the market - contracts would be concluded with those bidders who could prove that the gas originated in states not affected by an upright measure within the meaning of EU-Regulation No. 833/2014.  In the course of the second tender, ASGM was able to obtain a total of 12.3 TWh of gas, 8.5 TWh of which came from non-Russian sources. This means that the federal government's target was met in full.

Due to the fact that there was only little time available for the injection before the heating season, the second tender was scheduled so that the additional injection could start on 1 August. A total of 226 bids in three product categories were submitted via the ASGM digital bidding platform by 26 July.

All operators of storage facilities located on Austrian territory took part. Due to the amendment of the Gas Industry Act on the use of storage capacities ("Use-it-or-lose-it"), capacity in the Haidach storage facility was also available. Furthermore, Slovakian storage facilities with direct access to the Austrian network were also permitted. Out of a total of 33 registered Austrian and international companies, 22 successfully participated in the second tender.

The largest part (10.8 TWh) of the second tender was obtained with product 1 "Gas in storage". For the entire volume (12.3 TWh), storage capacities were also secured until 1 April 2025.

The costs for the second tender of the strategic gas reserve including storage costs until 1 April 2025 amounted to a total of EUR 2,995 million. With an average price of around 234 EUR/MWh, the costs were significantly higher than those of the first tender. This was due to the rapid increase in the market price from around 89 EUR/MWh on 23 May to over 201 EUR/MWh. The premium at the time of the award was thus slightly lower in absolute terms in the second tender than in the first.