Germany rejects 'unfounded' claims in spat with Italy over gas storage

FRANKFURT, Oct 30 (Reuters) - The German government on Friday pushed back against accusations from Italy that it failed to fill its gas stores ahead of winter in order to reduce costs for its gas import companies to prepare them for privatisation, calling such claims "unfounded".

Governments across Europe are grappling with how to shield consumers from rising energy costs and higher inflation as the wars in Iran, Ukraine and Yemen send oil and natural gas prices soaring. Prices are now around three times higher than before the Iran war started in late February.

An Italian official on Thursday said Rome had spent hundreds of millions of euros to fill its gas storage ahead of winter.

Germany has delayed stockbuilding while focusing on the privatisation of its energy groups Uniper and SEFE, key players in the storage-filling process, an energy analyst said, speaking at the same conference.

"We firmly reject the allegation that the procurement and storage of natural gas by SEFE drives up European gas prices," said a spokesperson for the German economy and energy ministry.

"The claim that Germany neglected to fill storage facilities during the privatization of SEFE and Uniper is unfounded."

SEFE was directed to source volumes from outside the EU whenever possible, the spokesperson said. "Consequently, the impact on the European market and on gas prices is minimized."

European gas storage levels were sufficient, the spokesperson said, even in the event of an exceptionally cold winter.

"While gas storage facilities are certainly important, Germany and the EU have access to alternatives, such as LNG and pipeline imports, as well as a highly integrated and well-developed gas network."