Germany activates gas alert level over drop in Russian deliveries

Germany on Thursday activated the “alert level” of its contingency plan to secure its gas supply, bringing the country one step closer to a rationing situation, in the wake of a 60% drop in supplies from Moscow via the Nord Stream gas pipeline. “We are in a gas crisis. Gas is now a scarce resource,” Economy Minister Robert Habeck told a press conference. In this context, the government will be able to “support” market players in coping with high prices.

Second stage of the device on the supply of German gas

This is the second stage of the device on the supply of German gas, activated last March, following the invasion of Ukraine by Russia. The third and final stage of this plan based on a model of the European Union, the “emergency level”, would allow the State to organize rationing in order to distribute the volumes between individuals, administrations, industry. The decision follows the 60% drop since last week in gas deliveries via Nord Stream to Germany from the Russian group Gazprom, which claims a technical problem.

But for the German government, it is a “political decision”, intended to weigh in the showdown between Moscow and Western countries over the war in Ukraine. This decision had a heavy impact on several European countries, in particular Germany, Italy and France. Admittedly, reserves in Germany currently stand at 58%, a level “higher than the average of recent years”. But if deliveries via the Nordstream gas pipeline “remain at a low level”, the “90% storage level”, recommended by German law will “not be reached”, according to the ministry.

Use more coal to save gas

This is why “we must take all the necessary measures to ensure our supply” in anticipation of next winter, said Robert Habeck. Already Germany announced on Sunday its decision to use more coal to save gas, which represented 15% of the electricity produced in 2021. Berlin also announced the opening of a fifteen billion euro credit line. euros the public bank KfW to finance the purchase of gas, whose prices have soared, by the player responsible for purchases for Germany, Trading Hub Europe.