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Germany raises gas alert level after Russia cuts supplies – AFR


Germany moved closer to natural gas rationing on Thursday as it raised the alert level as part of a contingency plan after Russia cut supplies to the country.

“Gas is now a scarce commodity in Germany,” Economics Minister Robert Habeck told journalists at a press conference.

Russia is using gas “as a weapon” against Germany in retaliation for Western support for Ukraine after Moscow’s invasion, Habeck said, with the aim of “destroying” European unity.

But the Kremlin dismissed as “strange” Germany’s suggestion that there were political motives behind the supply restrictions.

Like a number of other European countries, Germany relies heavily on Russian energy imports to meet its needs.

Triggering the “alert” stage – the second of three steps under the contingency plan – brings Germany one step closer to the final phase that could mean gas rationing in Europe’s leading economy.

The increased level reflected a “significant deterioration in the gas supply situation,” said Habeck.

“If we don’t do anything now, it will get worse,” Habeck said.

– Russian refutation –

Russian energy giant Gazprom cut supplies to Germany via the Nord Stream pipeline by 60 percent last week, blaming the new limits on delayed repairs.

Germany has dismissed Gazprom’s technical justification, calling the move a “political decision” instead.

Kremlin spokesman Dmitry Peskov said Thursday the supply decision had “no ambiguity.”

“Our German partners are aware of the technological maintenance cycles of a pipeline,” he said.

“It’s weird to call it politics.”

In recent weeks, Gazprom has halted supplies to a number of European countries, including Poland, Bulgaria, Finland and the Netherlands.

The gas supply of Europe’s largest economy is “safe”, said Habeck, but there is still a need for action to prepare for the upcoming winter.

To mitigate the risks of a supply disruption, government-ordered gas storage facilities must be 90 percent full by early December.

The country’s stores are currently almost 60 percent full, which is above the average for previous years.

In France, the government said on Thursday it intends to replenish its natural gas reserves by the autumn as it too braces for a drop in supplies from Russia.

France will also build a new floating terminal to receive more shipments of liquefied natural gas (LNG) by ship, Prime Minister Elisabeth Borne announced.

The terminal is to be positioned in front of Le Havre on the north coast of France.

“We can do without Russian gas,” said the French energy transition minister Agnes Pannier-Runacher later on BFM Business TV.

“This assumes that the LNG tankers arrive on time and that we can conveniently fill our strategic stocks,” she added.

The European Bank for Reconstruction and Development (EBRD), meanwhile, said it would lend Moldova 300 million euros for gas purchases.

– delivery stop –

The federal government expects deliveries to halt between July 11 and July 25 for annual maintenance on the Nord Stream pipeline.

If deliveries do not resume after the service period, Germany could face a gas shortage as early as “mid-December”.

Since the outbreak of war in Ukraine, Germany has managed to reduce the proportion of its natural gas supplies from Russia from 55 percent to around 35 percent.

The government has found new sources of supply, accelerated plans to import gas in the form of LNG by sea and allocated 15 billion euros ($15.8 billion) to purchase gas to fill storage facilities.

Germany has also decided to reactivate mothballed coal-fired power plants to relieve gas-fired power generation.

In contrast, the government has rejected calls to extend the operating life of its nuclear power plants.

Extending the use of the last reactors, which are scheduled to go offline at the end of the year, is “not an option,” it said on Wednesday.

Germany must see what “energy saving potential” there is, said Habeck on Thursday.

Households could “make a difference” by saving energy after Germany launched a campaign to promote fuel-saving measures, he said, while industry could also make a further contribution.

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