Page 6 - GLNG Week 13 2022

GLNG COMMENTARY GLNG

Germany unveils plan to

phase out Russian energy

Germany has unveiled details of its plan to phase out Russian energy

imports as soon as it can, but the process will not be easy

POLICY GERMANY is looking to halve its imports of to the 210,000 bpd Leuna refinery, but this is due
Russian oil by the middle of this year and make to expire this month. TotalEnergies has already
WHAT: its refining sector “almost independent” from said it will end its oil trade with Russia as soon
Germany is taking steps Moscow by the end of 2022, the country’s econ- as it can, and “by the end of 2022 at the latest.”
to phase out Russian omy minister Robert Habeck announced on Russian oil imports at Leuna will be halved by
energy imports as soon March 28. mid-April, according to the German govern-
as it can. Berlin has radically changed its energy policy ment’s plan.
in the wake of Russia’s invasion of Ukraine that However, the report stressed that phasing out
WHY: started on February 24. Once fairly comforta- Russian oil would not be an easy undertaking.
Berlin has radically ble with its significant dependence on Russian The alternative supply that is found must be of
changed its energy policy energy, it now has plans to phase out energy a similar quality, not just at Leuna but also the
in the wake of Russia’s trade with Moscow as soon as it can. 226,000 bpd Schwedt refinery, which accounts
invasion of Ukraine. Russian imports account for 35% of the oil for a third of Russian oil imports to Germany.
that was refined in Germany, according to an Rosneft has a 54.5% stake in the Schwedt
WHAT NEXT: energy security report released by the govern- refinery and had wanted to acquire Shell’s
Steps are being taken to ment on March 28. But dependence could be 37.5% stake. However, the German energy
expedite the development reduced to about 25% “in the coming weeks,” if ministry announced on March 21 it had put
of LNG terminals that expiring contracts are not renewed, the report the deal under review, likely indicating it will
can be repurposed for said. Alternative supplies can be sourced to be assessed to see if it is in line with Germany’s
hydrogen imports at a cover the shortfall, the report stated. national interests.
later stage. Russia’s Rosneft has a 12-month contract to The report stated that Germany might be able
deliver 47,000-83,000 barrels per day of crude to to offset a reduction in pipeline oil supplies with
France’s TotalEnergies via the Druzhba pipeline seaborne deliveries, either via the German port

Since placing the Nord
Stream 2 pipeline in
seemingly permanent
hiatus, the government
has announced it
will support the
development of LNG
terminals instead.

P6 www. NEWSBASE .com Week 13 01•April•2022