As Germany gears up for the winter season, the CEO of the nation’s largest utility company issues a pressing plea to expedite the development of gas import infrastructure.
As Germany gears up for the winter season, the CEO of the nation’s largest utility company issues a pressing plea to expedite the development of gas import infrastructure. In an interview with news outlet WirtschaftsWoche, the CEO underscores that the risk of surging energy prices remains a significant concern and has not been entirely mitigated.
Currently, Germany’s gas caverns are at an all-time high, boasting a robust 96.55% capacity. This provides a solid foundation for the country, alleviating concerns about potential supply shortages compared to the previous year.
Last year, Germany faced considerable challenges in replenishing its gas storage facilities, exacerbated by a halt in supplies from Russia via the Nord Stream pipeline—a pivotal source of gas. This disruption prompted apprehensions of insufficient fuel to heat homes throughout the winter.
In response, the German government has been actively promoting the construction of terminals for importing liquefied natural gas (LNG) as a viable alternative supply source. RWE CEO Markus Krebber emphasizes the critical nature of these efforts in ensuring a secure and stable energy supply.
Krebber states, “We don’t have any buffer in the gas system… If there is a very cold winter or supply disruptions, it can lead to very critical situations—and as a result, to shortages and significantly higher prices.”
As fixed terminals are still in the works, Germany has turned to floating storage and reception units (FSRUs) to help offset the gap left by the reduced Russian gas supplies. Presently, three FSRUs are operational at the ports of Wilhelmshaven, Brunsbuettel, and Lubmin, following Germany’s arrangement of their charter and onshore connections. For the upcoming winter season in 2023/24, additional ships are slated to be added at Wilhelmshaven, Mukran, and Stade.
This urgent call for accelerated gas infrastructure construction underscores the gravity of the situation and the need for proactive measures. The CEO’s warning serves as a reminder that ensuring a stable and reliable energy supply is paramount for both households and industries, especially in the face of potential supply disruptions or severe weather conditions.
By prioritizing the development of gas import infrastructure, Germany can fortify its energy security and resilience, ultimately safeguarding against potential shortages and mitigating the impact of fluctuating energy prices. This strategic investment not only bolsters the nation’s energy independence but also reinforces its position as a leading player in Europe’s energy landscape.