Germany’s top energy regulator said the country can last just 2.5 months without Russian gas, and there will be a ‘difficult’ autumn and winter ahead
Fri, June 24, 2022, 2:27 PM·3 min read
With Russian gas flows drying up, imports-reliant Germany is bracing for rationing measures and an economic slowdown. And officials warn that a harsh winter of gas shortages will be in the cards if Russia turns off the taps.
Germany currently relies on Russia for 35% of its natural gas imports, meaning that even a small shift in supply could send prices soaring. That happened last week, when gas prices in Germany went up 24% after Russian company Gazprom halted gas flows along the Nord Stream 1 pipeline connecting the two countries.
Russian officials claimed the interruption was due to technical issues, but German economy minister Robert Habeck called the shutoff “politically motivated.”
German officials have refused to rule out future closures of gas flows, and should Russian imports stop completely, it would not take long for a disastrous gas shortage and sky-high prices to hit the country.
The grace period would be around 10 weeks, according to Klaus Müller, head of the country’s top regulatory office for electricity and gas.
“If the storage facilities in Germany were mathematically 100% full…we could do without Russian gas completely…for just about two and a half months, and then the storage tanks will be empty,” Müller said Thursday on ZDF’s political talk show Maybrit Illner.
Müller said that gas rationing initiatives by the government, industry, and private individuals will likely be necessary, but should Russia cut off gas flows, Germany will need to move fast to find alternative suppliers and avoid “difficult” months ahead during autumn and winter.
On Thursday, economy minister Habeck announced that Germany had entered the second and penultimate stage of its gas supply alert system. At this stage, “security of supply is currently ensured, but the situation is tense,” according to a statement from Habeck’s ministry.
Habeck said Thursday that filling up Germany’s gas storage facilities before next winter is a “top priority” for the government, although there is still a long way to go, with storages only 56% full as of last week. Habeck has said that the plan is for storages to be 80% full by October and 90% full by November.Story continues
- 1.UPDATE 1-Putin promises Belarus Iskander-M missiles to counter “aggressive” West
- 2.UPDATE 1-Protesters at U.S. Supreme Court decry abortion ruling overturning Roe v. Wade
- 3.Costa Rica asks IMF for $700 million from new sustainability trust
- 4.Germany Pushes for G-7 Reversal on Fossil Fuels in Climate Blow
- 5.French PM Borne backs enshrining abortion rights in constitution
- TipRanksJim Cramer Says Earnings Estimate Cuts Will Form an Investable Bottom; Here Are 3 ‘Strong Buy’ Stocks That Are Already Down 50%As we move toward the end of Q2, it’s time to start thinking about earnings. Looking back at the quarter, analysts are predicting earnings growth of 8%, which may rise to 11% heading into next year. It’s a rosy picture, but it’s also not a sure thing. GDP contracted in Q1, by nearly 1.5%, and some estimates are showing 0% growth in Q2. Such results would meet the technical definition of a recession – and recession is hardly the usual environment to find robust earnings growth. Looking at current1d ago
- MoneyWiseJim Rogers warns of the ‘worst bear market’ in his lifetime – these are the 2 ‘least dangerous’ assets to own todayRogers knows a thing or two about making money in turbulent times.2h ago
- Ad•Empire Financial ResearchAdLegend Predicts $3.8 Trillion “Master Reset”Few people understand the full gravity of what’s happening. But one Wall Street veteran is predicting a “Master Reset” in one $3.8 trillion industry.
- MoneyWiseHow can I stop the pain and make money in this nightmarish market? BofA says this is the ‘best hope’ for bulls in 2022Companies could be returning trillions to shareholders. Here’s how to accept it.4h ago
- GOBankingRatesHow Much is Mark Cuban Worth?Entrepreneur, investor and philanthropist Mark Cuban began building his fortune in 1990 with the sale of his technology startup, MicroSolutions.Three decades later, his business ventures and stakes in…21h ago
- VarietyVariety Names