Germany’s fuel reserves face essential vitality provide take a look at | EUROtoday

In early February, German media shops reported on the strains affecting Germany’s fuel reserves.

The information journal Focus warned that the “cold snap devours our gas reserves.” At the identical time, the TV broadcaster ntv mentioned that “Germany’s gas reserves would theoretically last for about six more weeks,” and warned: “There is hardly any room for additional strain.”

The deal with fuel reserves is a consequence of Russia’s invasion of Ukraine. In 2022, the German authorities determined that it now not needed to purchase oil and fuel from Russia. That led to the query of whether or not Germany might fulfill its vitality wants with out Russian fuel. By the next yr, it was evident that Germany might handle.

This was due, partially, to the diversification of import sources. Gas from Russia was changed by imports from, amongst others, the United States and Norway. At the identical time, import routes have been tailored. Increasingly, liquefied pure fuel (LNG) has been imported by sea. The terminals have been deliberate, authorised, and put into operation in report time.

Sufficient fuel reserves in Germany

The present winter in Germany is the harshest in years, prompting questions on provide safety.

However, Susanne Ungrad, the press spokesperson for the Ministry for Economic Affairs and Energy (BMWE), advised DW that “the gas supply is secured.” This, she mentioned, was because of the “well-developed LNG infrastructure in Germany and Europe” and the “main supply via Norwegian pipeline gas.”

Fiete Wulff is equally sanguine about Germany’s reserves. The press spokesperson of the Federal Network Agency advised DW that “at present, we see no threat to the gas supply.” He added that “gas storage fill-levels are an important indicator, but not the only one.” A big “share of our gas supply comes via pipelines and LNG shipments from neighboring countries,” he mentioned.

Even within the occasion of a harsher winter than the one presently being skilled, provide could be secured, Wulff identified. More important, he mentioned, could be “disruptive events such as terrorist attacks or the failure of major import pipelines.”

Olaf Geyer, who heads the Energy Practice in Germany and Switzerland on the technique consultancy Arthur D. Little, can be relaxed concerning the present scenario. When requested whether or not the reserves are ample, he was clear: “Yes. Under normal conditions. If extreme cold spells do not last longer than one or two weeks, then they are sufficient.”

That confidence is shared by Oskar Burmann of the business affiliation for fuel and hydrogen, a lobbying group representing the fuel sector.

“The legally mandated fill-level requirements for gas storage facilities have been met. In addition, thanks to the existing LNG infrastructure and new pipeline connections, the gas industry is fully capable of responding even at short notice to additional demand,” he mentioned.

How do the storage amenities work?

Sebastian Heinermann, managing director of the “Initiative Energien Speichern” (INES), the affiliation of German fuel and hydrogen storage system operators, defined that imports are constant all year long.

Consumption, against this, is versatile. In summer time, demand is low. “If we import 3.1 TWh (terawatt-hours) on a normal summer day but, for example, consume only 1.3, then a residual amount remains.” According to Heinermann, this surplus is “partly exported, but to a large extent also flows into storage.”

Unlike import volumes, the filling and withdrawal of storage amenities are topic to seasonal fluctuations, Heinermann defined. “Storage facilities are filled in summer. In winter, they are primarily used to supply energy.”

However, pricing is an issue, Heinermann mentioned. “There is unanimous agreement within the industry that gas prices were exceptionally high last summer. They were so high that gas cost more to buy in summer than it could be sold for in winter. This is referred to as a negative summer/winter spread.”

This, he added, was not a legislation of nature however a results of provide and demand. Gas suppliers might solely count on restricted authorities assist on this regard.

According to the BMWE’s spokesperson, “storage filling must take place through market mechanisms,” including that any state intervention “should only occur if it sustainably increases security of supply and does not relieve market participants of their responsibility.”

What’s in retailer for Germany subsequent yr?

When requested concerning the resilience of Germany’s storage system, Arthur D. Little analyst Geyer famous “that the energy system today is significantly more stable than it was three or four years ago.”

However, he additionally sees challenges forward for Germany. “We will come out of winter with low storage levels, and then the question is: how will they be refilled?”

Attractive wholesale costs play a key function right here, “so that this summer/winter spread is economically viable.” He emphasised that “there has to be a substantial gap” between the costs at which fuel is purchased in summer time and offered in winter, “for it to be attractive.”

Geyer says extra ought to be carried out to make fuel provides safer and is looking for “more flexibility in the system.” This consists of further storage capability and lively demand-side administration.

However, he pressured that increasing different vitality sources is important. Electrifying warmth era, he mentioned, would considerably strengthen the complete vitality system.

This piece was initially revealed in German.