Bloomberg | Bloomberg | Getty Images Germany said the deteriorating gas market meant that Europe’s largest economy needed to reduce its use of gas to generate electricity and burn more coal for a “transitional period”. Economy Minister Robert Hubeck warned on Sunday that the situation would be “really tight in winter” without precautionary measures to avoid a shortage of supplies. As a result, Germany will seek to offset the decline in Russian gas supplies by increasing the burning of carbon – the most carbon-intensive fossil fuel in terms of emissions and therefore the most important replacement goal in the transition to renewable alternative sources. “This is bitter, but it is almost necessary in this situation to reduce gas consumption. We must and will do everything we can to store as much gas as possible in the summer and autumn,” said Habeck of the Republican Party. Greens in a statement, according to a translation. “Gas storage tanks must be full in winter. This is a top priority,” he added. This comes shortly after an ominous warning from Russia’s state-backed energy giant Gazprom heightened fears of a complete supply cut in the European Union. Gazprom said last week that it had further limited supplies via the Nord Stream 1 pipeline, which runs from Russia to Germany under the Baltic Sea. German Economy Minister Robert Habeck said that “the tense situation and high prices are a direct consequence of Putin’s aggressive war against Ukraine.” Picture Alliance | Picture Alliance | Getty Images Gazprom cited a technical problem with the supply disruption, saying the problem stemmed from the delayed return of equipment served by Germany’s Siemens Energy to Canada. Hubeck denied the allegations, saying the move was politically motivated and aimed at upsetting the region and boosting gas prices. It is not yet known when or if Nord Stream 1 gas flows will return to normal.
“Our product, our rules”
In fiery comments that may have sounded the alarm in all European capitals, Gazprom chief executive Alexei Miller said on Thursday that Russia would play by its own rules after the company halved supplies to Germany. “Our product, our rules. We do not play by rules we did not create,” Miller told a meeting of the St. Petersburg International Economic Forum, according to The Moscow Times. Italy, Austria and Slovakia also reported reductions in supply from Russia. European policymakers are currently trying to fill underground storage facilities with gas supplies to provide households with enough fuel to keep their lights on and their homes warm before the cold returns. The EU, which receives about 40 percent of its natural gas through the Russian pipeline, is trying to quickly reduce its dependence on Russian hydrocarbons in response to the Kremlin’s months-long offensive in Ukraine. “The tense situation and the high prices are a direct consequence of Putin’s aggressive war against Ukraine. There is nothing wrong with that. In addition, it is obviously Putin’s strategy to upset us, raise prices and divide us. We will not allow that. “We are defending ourselves resolutely, accurately and thoughtfully,” Habeck said. Germany’s storage facilities are currently at about 56% capacity, above storage levels for the same period last year, Habeck said. “The missing quantities can still be replaced and the gas storage tanks are still being filled, albeit at high prices. Security of supply is currently guaranteed, but the situation is serious,” he added.
