After Russia curtailed gas supply via the crucial Nord Stream pipeline by 60% due to “technical issues,” Germans have been advised to consume less energy.
On Tuesday, state-owned Gazprom announced a 40% drop in gas flows via the underwater Nord Stream 1 pipeline to Germany, followed by another cut the next day, bringing the total reduction to nearly 60%.
It cited a technical issue in both cases, claiming that Canadian restrictions related to the Ukraine conflict stopped German partner Siemens Energy from delivering equipment that had been sent for refurbishment.
The German government disagreed, claiming that maintenance should not have been a concern until the autumn and that Russia’s action was a political ploy to create uncertainty and drive up prices.
In a video broadcast by his ministry on Twitter on Wednesday night, German vice chancellor Robert Habeck claimed that Russian President Vladimir Putin is “doing what was to be feared from the beginning: he is lowering the volume of gas, not in one go but bit by step.”
He cited Russian measures to halt supply to Bulgaria, Denmark, and others in the past.
Germany, with Europe’s largest economy, imports around 35% of its gas from Russia to power industry and produce electricity.
The announcement of the cuts drove short-term natural gas prices in Europe soaring. On Thursday, month-ahead market rates jumped 13% to 139.10 euros (£118) per kilowatt hour, up 40% since Monday.
Last week, Habeck, who is also the economics minister, started an energy conservation campaign. He pounded hard the idea in a video released Wednesday night after the Gazprom news.
‘Gas is flowing to Europe – we don’t have a supply problem,’ Habeck added, ‘but the amounts of gas must be purchased on the market, and it will become more costly.’
He stated that the government is prepared and that law mandating gas storage to be filled has been adopted.
He praised Germans and businesses for their desire to conserve energy and stockpile gas.
He stated, ‘Now is the time to do so.’ ‘In this circumstance, every kilowatt hour helps.’ It’s a severe problem, but it’s not one that puts Germany’s supply security in jeopardy.’
On Tuesday, the director of Germany’s energy regulator, the Bundesnetzagentur, said that Gazprom’s decision to limit supply was a warning sign that might pose issues for Europe’s largest economy over the winter.
The regulator’s chief Klaus Mueller told the Rheinische Post newspaper, ‘It would greatly complicate our situation.’
‘Now that the heating season is past, we might be able to get through the summer.’ But, in order to get through the winter, we need to fill the storage facilities,’ he added.
‘It has so far been Russia’s reasoning to want to continue providing gas to Germany,’ Mueller said when asked if he was concerned that Russia was serious about suspending gas shipments. But nothing can be ruled out.’
Germany is pushing up plans for liquefied natural gas (LNG) terminals as part of its effort to lessen its reliance on Russian energy, and Mueller said he would welcome a floating facility at Lubmin, on the Baltic Sea. find out more
‘A floating terminal at Lubmin is being examined, and there are now conversations,’ Mueller said, adding that the Baltic Sea, as well as the North Sea, were being considered to ensure sufficient capacity supply of gas from the coast in southern Germany.
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