Factbox: How is Germany replacing Russian gas?

FRANKFURT, Oct 24 (Reuters) – Germany, Europe’s largest economy and historically a major importer of Russian gas, is scrambling to secure alternative supplies after inflows from Russia plummeted since its invasion of Ukraine. This is what Germany does:

WHERE DO THE SPARE PARTS COME FROM?

Germany gets more gas from the Benelux countries, Norway and France.

Germany imported 37.6% of Norway’s gas in September, compared with 19.2% in the same month last year, while Dutch supplies rose to 29.6% of imports from 13.7%, data from utilities industry group BDEW showed.

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Russian volume was zero in September after being up 60% in September 2021, BDEW said.

PRICES

Benchmark front-month gas prices on the Dutch Title Transfer Facility (TTF) market are down 70% from August records, standing at €104 per megawatt-hour (MWh).

That’s still 15% up from a year ago, but reflects the impact of the replacements.

The underground gas storage caverns are 97.2% full.

STRATEGIES OF IMPORTERS

Troubled importer Uniper (UN01.DE) has said it sources Norwegian, Dutch and Azerbaijani gas via pipelines and is using its global role as a liquefied natural gas (LNG) trader to source more of the subcooled gas to north-west Europe.

In 2021, 350 LNG cargoes were handled at sea.

According to its own statements, the EnBW subsidiary VNG (EBKG.DE) has replaced two Russian contracts totaling 10 billion from Securing Energy for Europe (Sefe), formerly Gazprom Germania, since May.

In 2023, Sefe aims to source 20% of its portfolio in the form of LNG and has made inquiries to many trading partners.

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LNG TERMINALS

In the absence of LNG reception terminals, Germany is building floating LNG terminals (FSRUs) in Brunsbüttel and Wilhelmshaven, two of which will be ready by the turn of the year. Two more will follow in Stade and Lubmin.

The four will have a total capacity of 22.5 billion cubic meters.

A fifth FSRU is planned for winter 2023/24.

In the long term, stationary onshore terminals will be built to accommodate gas, carbon-free hydrogen and ammonia.

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Reporting by Vera Eckert and Tom Kaeckenhoff Editing by Mark Potter

Our standards: The Thomson Reuters Trust Principles.

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