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Germany to hoard gas – media — Analysis

The country “must and will do everything” to store as much gas as possible, Economy Minister Robert Habeck reportedly said

Russia’s reduced gas supplies are about to make Berlin take more measures to protect its energy resources. This includes arranging a billion-euro loan and organizing an international conference. “gas auction”German industrial customers were notified by the news agency dpa on Sunday. It cited a Policy Paper from the Economy Ministry.

Germany should reduce its gas consumption even further and stock up more gas, if it wishes to be able to meet the challenges of climate change. “really hard”According to the dpa, Robert Habeck, Economic Minister, warned that times would be tough this winter.

The Economy Ministry believes that the gas shortfall due to the reduced supplies from Russia can still be replaced and the nation’s storages can be filled in time, although at higher prices. The document from dpa states that gas consumption should be decreased in all sectors, but storage tanks must be filled.

To secure supplies, the government plans to provide a loan worth €15 billion ($15.74 billion) through the state-controlled bank KfW to purchase additional gas on the market. According to dpa the money is likely to be sent to Trading Hub Europe (THE), the country’s national gas market trading platform. It will then be used to purchase additional gas or fill storage units.

German industry will be expected to help with the gas auction process that Habeck hopes to start this summer. German media claim that the goal is to offer companies incentives to buy or save their gas. Companies that are able to provide this service will be more successful. “can do without”Their gas consumption might be reduced and their gas made available to the market via the THE so it can stored.

Gas will be less important in the production of electricity. Habeck plans to utilize coal-fired power stations, according to reports. “more widely.”The legislation, which is being passed through the Bundesrat (upper house of German parliament), is in process. It is due to be approved by the 8th July, Der Spiegel reports. In addition, the government plans to modernize its power plants. “gas replacement reserve”To get them back in service quicker.

“That means, we have to be that honest, more coal-fired power plants then for a transitional period,”Habeck stated this in an email statement to Bloomberg. “That’s bitter, but it’s simply necessary in this situation to reduce gas consumption. We must and we will do everything we can to store as much gas as possible in the summer and fall,”He added.

EU states forced to use gas reserves

According to German media, the Federal Network Agency reports that gas storages in Germany currently hold 56.7%. The government’s plan is to fill them to 80% by October 1 and 90% in early November, according to Der Spiegel. The cabinet had already provided €1.5 billion ($1.57 billion) for gas purchases back in March.

Gazprom slowed down gas supplies to Germany using the Nord Stream pipeline in June. Russian energy giant Gazprom explained this move saying that Canadian sanctions had prevented the return of a Siemens maintenance unit from Canada.

Berlin has condemned the slowing delivery of goods as “a” “political decision” linked to tensions between Russia and the West over Moscow’s military operation in Ukraine. “It is obviously [Russian President Vladimir] Putin’s strategy … to drive the prices up and divide us,”Habeck stated this in a statement for the media.

Bloomberg reports that the EU has been forced to draw down its gas reserves due to rising energy costs in Europe. The EU’s gas storage levels decreased this week for the first time in two months, the media outlet reported on Saturday.

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