So Germany has set aside 15 billion euros ($15.64 billion) to fill its storage facilities. The head of Germany’s energy regulator has warned that even that amount might not be enough to fill the reservoirs by winter. The reason is simple, with uncertainty on the supply side and a lot of pressure from the demand side, it is quite possible that the price of gas will go up even further, which would mean that the amount earmarked would not be enough to fill the storage facilities sufficiently.
Germany has clear plans
Germany has a clear plan. Fill its storage tanks to 80% by October, then to 90% by November. Now Germany has filled its storage tanks to about 61%.
“The more the gas price rises, the more expensive it becomes to reach the statutory storage targets in October and November.”
Read also: A distasteful month for commodities
At the same time, there is still uncertainty about the Nord Stream 1 pipeline, which was partially shut down some time ago due to delays in repairs, and further repairs are scheduled for July. We have heard a statement from Germany on this.
“Based on our recent experience in dealing with Russia, it would be irresponsible to assume that everything will be fine on its own.”
Germany could be helped in part by Norway, for example, which as we reported earlier is increasing gas production to help Europe out of this energy uncertainty. Australia is also reporting energy problems and India is showing us further steps to maintain energy security. China has also significantly reduced its exports of gasoline and other fuels. We can see from this that most countries are therefore logically looking for the best possible means of securing their domestic market in the first place. And Europe is therefore hoping that there will be enough gas left for it on the global market.
Post has no comment yet.