Gas flames on a stove are depicted in a private home in Bad Honef near Bonn, Germany, March 30, 2022. REUTERS / Wolfgang Rattay / File Photo
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- KfW will provide a € 15 billion loan to fill a source gas storage facility
- Introduce a tender system to reduce the consumption of industrial gas
- Coal-fired power plants could add 10 GW of power
- Discussions continue on the second level of the crisis – sources
FRANKFURT, June 19 (Reuters) – Germany announced on Sunday its latest steps to increase gas storage levels to prepare for next winter’s season, fearing that Russia, which has cut supplies in recent days, could to reduce or even completely suspend supplies.
Following Russia’s invasion of Ukraine, Germany, which relies on Moscow for most of its gas, is seeking to fill its gas storage facilities and phase out Russian energy imports.
The German economy ministry said the new measures would include greater reliance on coal-fired power plants, as well as a tender system that will start in the coming weeks to encourage the industry to consume less. Read more
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It also includes 15 billion euros ($ 15.8 billion) in credit lines for the gas market operator in Germany, through state lender KfW (KFW.UL), to fill gas storage facilities faster, a government source said. asking not to be named.
Economy Minister Robert Habeck said that depending on the situation, the ministry responsible for security of energy supply in Europe’s leading economy would take additional measures.
Two people familiar with the matter, who requested anonymity, said it could include launching the second phase of Germany’s gas emergency plan.
The second phase, which begins when there is a high risk of long-term gas shortages, will allow utilities to pass on high gas prices to customers and thus help reduce demand. Read more
The German Chemical Industry Association VCI, which represents the sector most exposed to cuts in gas supplies, said the reduced supplies had not yet caused acute problems.
SICK, BUT NECESSARY
The measures, announced Sunday, follow a package unveiled earlier this year to provide Germany’s energy companies and economy with payments to support management of the crisis in Ukraine, which has led to rising electricity costs.
“The tense situation and high prices are a direct consequence of (Russian President Vladimir) Putin’s aggressive war against Ukraine,” Habek said in a statement.
“Moreover, obviously Putin’s strategy is to make us insecure, raise prices and divide us. We will not allow this to happen. We will fight resolutely, accurately and thoughtfully. “
The economy ministry said the return of coal-fired power plants could add up to 10 gigawatts of power in the event of a critical gas supply situation, adding that the law would be sent to the upper house of parliament on July 8th.
“It’s painful, but in this situation there is a clear need to reduce gas consumption,” said Habek, a member of the Green Party, which has called for a faster exit from carbon-intensive coal.
“But if we don’t, then we risk the warehouses not being full enough at the end of the year for the winter season. And then we are blackmailed on a political level.”
Germany targets storage levels of 80% by October and 90% by November.
Data from Gas Infrastructure Europe show that gas storage levels in Germany were 57.03% on June 17, compared to 29.69% on February 24, the day Russia invaded Ukraine.
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Report by Christoph Steitz and Andreas Rinke; edited by Barbara Lewis
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