Page 12 - FSUOGM Week 23 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Germany faced with €5bn bill over

Russia gas sanctions

GERMANY RUSSIA’S sanctions on Gazprom Germania and Gazprom’s failure to fill Rehden, Germa-
its subsidiaries could cost German taxpayers ny’s largest gas storage site, was one of the trig-
German regulators took €5bn ($5.4bn) for the purchase of alternative gas gers that prompted regulators to seize control
over operational control supplies, German newspaper Welt am Sonntag of Gazprom Germania. Storage utilisation
of Gazprom Germania reported on June 5. at the facility has remained at about 2% for
in mid-April. German regulators took over operational months.
control of Gazprom Germania, formerly owned “We are taking another important step to fur-
by Russia’s Gazprom, in mid-April, in a bid to ther strengthen security of supply and prepared-
safeguard its gas supply. But in mid-May, the ness in Germany and to be adequately equipped
Russian government responded by slapping for the next winter in particular,” Habeck said
sanctions on the company and halting deliveries on June 1. “Since the storage levels of Germany’s
to it. largest gas storage facility in Rehden have been
Acting as Gazprom Germania’s trustee, Ger- at a historic low for months, it is necessary to act
many’s Bundesnetzagentur energy regulator quickly here.”
has since been buying replacement gas on the Germany’s government enacted a law on
market, in order to fulfil supply obligations with April 30 that gas storage facilities be filled to 80%
German utilities and regional suppliers. But this capacity by October 1, up from 51% nationwide
has come at a significant expense. as of June 5.
Germany’s economy ministry estimates that The new law also empowers the government
some 10 mcm per day of gas has to be purchased to step in to act if it becomes clear that the storage
to replace the lost Russian volumes, Welt am requirement cannot be met.
Sonntag said. “In the case of Rehden in the face of the
“The quantities are procured on the market Ukraine war this is the case,” the minister said
and at market prices,” a spokesperson for the in a statement.
ministry said in an emailed response to Reu- Gazprom also cut off gas supply to Shell
ters. “No information can be given on the exact Energy Europe in Germany at the start of this
amounts due to commercial confidentiality.” month, over its refusal to pay for supplies in
Welt am Sonntag estimates the current cost rubles. The contract covered up to 1.2 bcm of
of this replacement supply at about €3.5bn, and annual supply.
further cost could arise from the need to refill the “With the ministerial decree, we are creating
Rehden gas storage facility. German Economy the conditions so that the market area manager
Minister Robert Habeck ordered reinjection into Trading Hub Europe can start injecting gas as
the facility to start last week. quickly as possible,” Habeck said. ™

P12 www. NEWSBASE .com Week 23 08•June•2022