Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

German gas supply secure for next winter, economic institute says

Published 22/02/2023, 13:05
© Reuters. FILE PHOTO: The main deck of the Floating Storage and Regasification Unit (FSRU) "Neptune" is seen during the official commissioning of the liquefied natural gas (LNG) terminal "Deutsche Ostsee" at the harbour in Lubmin, Germany, January 14, 2023. John Ma
NG
-

BERLIN (Reuters) - Germany is unlikely to face a gas shortage in the coming winter and should halt the conversion of floating liquefied natural gas (LNG) terminals to fixed ones, the DIW economic institute said in a study seen by Reuters on Wednesday.

In the most likely scenario, Germany would have sufficient supply of around 87 billion cubic metres (bcm) this year if demand remains 12% below the 2018 to 2021 average, the study said.

The total supply could even rise to 94 bcm, around the same level as in previous years, if Germany's import capacities for liquefied natural gas (LNG) were utilised to 95%.

With the LNG terminals in Belgium and the Netherlands, as well as floating facilities in Germany, there is sufficient import capacity for LNG to be able to meet rising demand in Germany. "In particular, this can be achieved through a higher willingness to pay than in other world regions," DIW said.

© Reuters. FILE PHOTO: The main deck of the Floating Storage and Regasification Unit (FSRU)

However, because of the improved gas supply situation, the institute advocates stopping the conversion of floating LNG terminals to fixed ones, saying the gas industry took the opportunity that arose during the uncertainties in spring 2022 to build projects far beyond the foreseeable sensible volume.

Germany is phasing out the use of fossil natural gas in the medium term, said the institute, meaning the burning of natural gas must be ended as part of the path to climate neutrality.

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.