Germany's gas supply situation stabilises after restart of Nord Stream 1

Berlin, July 26 German gas supplies are solid again as the country's storage facilities are filled to almost two-thirds of capacity, Klaus Mueller, President of the country's Federal Network Agency (BNetzA), said.

After 10-day maintenance of the crucial Nord Stream 1 pipeline, gas deliveries from Russia resumed on July 21 (Thursday). Gas flow is now at the reduced pre-maintenance level of 40 per cent.

During the temporary halt to Russian gas supplies through Nord Stream 1, gas flow to Germany was significantly reduced, putting further pressure on prices. The German government aims to fill storage to 95 per cent of capacity by November, Xinhua news agency reported.

In June, prices for energy products continued to rise sharply and were up 38 per cent year-on-year, according to the Federal Statistical Office (Destatis). In particular, heating oil prices more than doubled and natural gas was around 61 per cent more expensive.

Last Friday, the German government stepped in to save Uniper SE, the largest German importer of Russian gas, with a "comprehensive support package," according to a statement by the Ministry for Economic Affairs and Climate Action (BMWK).

Uniper played a "central role" in the supply of gas and electricity in Germany, the BMWK said. The company was in "an acute emergency situation due to the failure to deliver contractually agreed gas supplies".

"We all face major challenges," German Chancellor Olaf Scholz said.

"No country can say that it is not affected by the rising energy prices that are playing a role worldwide and, of course, by the challenges that are arising with regard to gas."

According to Destatis, natural gas is a "major energy source" for both industry and households in Europe's largest economy. In 2020, natural gas generated 31 per cent of the German industry's power demand.

At the same time, Germany has become highly dependent on gas imports. In 2021, net imports of natural gas amounted to an energy output of 904.5 billion kilowatt hours. Only around 5 per cent were generated domestically, according to Destatis.