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Natural gas

Germany Prepares for Potential Gas Shortages as Nord Stream Pipeline Maintenance Continues

Strategic Insights

— 1 min read

German officials are on high alert after Russia's Gazprom reduced gas flow through the Nord Stream 1 pipeline by 60 percent last month, citing technical problems. The pipeline, which runs from Russia to Germany and is the country's main source of Russian gas, is currently shut down for annual maintenance until July 21. German politicians have dismissed Russia's technical explanation, suspecting that the decision was a political gambit to sow uncertainty and push up energy prices.

Key Takeaways:

  • Germany receives about 35 percent of its gas from Russia, with the majority coming through the Nord Stream 1 pipeline.
  • German officials are concerned that Russia may not resume gas deliveries after the pipeline's maintenance, citing varied and martial messages from the Kremlin.
  • The German government is preparing to restart 10 coal-fired power plants and 6 oil-fueled power plants to make up for shortfalls in gas supply, despite environmental concerns.
  • The government argues that the short-term increase in emissions will be compensated for with new measures to accelerate the installation of renewable energy.
  • Ukrainian President Volodymr Zelenskyy predicts that Russia will cut off its supply of natural gas to Europe at the most acute moment.
  • Canada has allowed the shipment of a repaired gas turbine, which has been criticized as setting a dangerous precedent that Russia will exploit.
  • European countries are scrambling to fill gas storage in time for winter and reduce their dependence on Russian energy imports.

Statistics:

  • 35%: The percentage of Germany's gas that comes from Russia.
  • 60%: The reduction in gas flow through the Nord Stream 1 pipeline by Gazprom last month.
  • 10: The number of coal-fired power plants that will be restarted to make up for shortfalls in gas supply.
  • 6: The number of oil-fueled power plants that will be restarted.
  • 11: The number of coal-fired power plants scheduled to be shut down in November that will be allowed to keep operating.
  • 21 million cubic meters: The amount of gas that Gazprom will provide to Italy on Monday, compared to an average of 32 million cubic meters.

Sources:

  • "Germany Prepares for Potential Gas Shortages as Nord Stream Pipeline Maintenance Continues" by Global Data Point (2022)
  • Statement by Ukrainian President Volodymr Zelenskyy (2022)
  • Statement by Czech minister of industry and trade, Jozef Skela (2022)
  • Statement by French Economy and Finance Minister Bruno Le Maire (2022)
  • "Gas turbines can come back to Germany - Canada" by ZDF (2022)

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