German gas supply secure, no market intervention needed, says ministry

BERLIN, Feb 17 (Reuters) - Germany's gas supply remains secure this winter and there is no need for state intervention in the market, the economy ministry said on Tuesday, pointing to a more stable situation than last year and strong LNG and pipeline imports.

A ministry spokesperson said the government was working on a successor arrangement to existing storage rules, and examining an additional tool to better protect critical energy infrastructure, including pipelines.

Any state action should only occur if it "sustainably improves supply security" and is cost-efficient, the spokesperson added.

Germany implemented a three-stage emergency plan in June 2022 to reduce its dependence on Russian gas due to Russia's invasion of Ukraine and a subsequent sudden drop in gas imports from Moscow.

Since then the country has built several LNG terminals, signed deals with Qatar, Oman, Norway and others to diversify supply.

Germany's former dependence on Russian gas has been replaced by alternative sources, while gas demand has fallen 15% since 2022, the economy ministry said.

Reliable LNG and pipeline imports are stabilising the market, and gas prices have settled close to 32 euros ($37.81)per megawatt hour after a modest cold-weather rise.

Storage levels were above legal thresholds and remain effective given reduced consumption, the spokesperson said.

($1 = 0.8462 euros)