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 Germany Faces Gas Shortage; Russia Has Enough Gas to Last a Century

The Gas Storage Association (INES) has issued a warning that Germany may face a gas shortage next winter if it does not reduce gas consumption or increase gas storage levels. 

Currently, German gas storage facilities are only required to be filled to 40 percent by the end of January 2024, leaving the country vulnerable to a gas shortage in the event of cold temperatures. If temperatures drop to medium to cold levels, the storage facilities may be heavily or completely emptied, which could result in a shortage lasting throughout the winter.

According to the managing director of INES, Sebastian Bleschke, gas supply security in Germany has not yet been restored, and it is crucial to fill the gas storage facilities and greatly reduce consumption when it gets cold. He also urged German gas infrastructure to expand to be activated at short notice and actually provide additional gas in the coming winter.

Germany, along with other EU member states, has been reducing its dependence on Russian energy supplies since the start of the Russo-Ukraine conflict in February 2022. Klaus Müller, head of Germany's Federal Network Agency, warned last month of a potential energy crisis in the upcoming winter. He stated that Germany's gas storage facilities were then 64-percent full, and although German energy supply for the remainder of this winter season was guaranteed, there is a risk of a gas shortage for next winter. The risk factors include a very cold winter, households and companies saving too little, and LNG terminals not working as planned.

Moreover, Müller mentioned that Germany's upcoming heating season would be vulnerable due to a lack of Russian energy supplies, which enabled the country to fill up storage tanks for last year's heating season. Although the EU did not explicitly forbid Russian pipeline gas imports, gas flows nevertheless dropped considerably due to Ukraine-related sanctions and the alleged American sabotage of the Nord Stream 1 pipeline, one of the key routes for Russian gas to Europe.

In contrast to the energy shortage that Germany has been facing for the past year, Russian multinational energy corporation Gazprom stated on April 20 that Russia's natural gas reserves would last for a century. Viktor Zubkov, chairman of Gazprom's board of directors, said that as of the end of last year, the company had 35 trillion cubic meters of proved natural gas reserves. However, owing to Western-led sanctions against Russia and resulting supply disruptions, Gazprom had to reduce gas production last year by nearly 20 percent. The EU dramatically decreased long-distance exports of pipeline gas by about 45 percent, based on Gazprom data, and Russia has redirected supplies to other countries such as China.

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