Germany risks gas shortage as early as January 2024

Germany will live with the risk of a severe gas shortage until early 2027 if it does not build additional fuel infrastructure. However, if the upcoming winter is cold, the stocks in storage may be exhausted by the end of January 2024, informs Bloomberg, citing information from INES, a group of gas storage operators.

Additional liquefied natural gas (LNG) receiving terminals, as well as gas storage facilities and pipeline equipment, are needed to secure supplies. Despite the fact that stocks are now growing and storage facilities are almost 90% full, a cold winter could threaten Germany’s energy security, the agency said.

“The danger of gas shortages during a period of low temperatures remains and will accompany us until the winter of 2026/2027 if additional infrastructure measures are not taken,” Sebastian Bleschke, head of INES, said.

Bloomberg notes that Europe’s largest economy has been hardest hit by Russia’s 2022 cuts in gas supplies, but has managed to build alternative supplies thanks to a combination of mild winter weather and reduced consumption, as well as the rapid construction of LNG terminals on the coast.

On June 12, German Economy Minister Robert Habek said that if Russia and Ukraine do not extend the gas transit agreement after 2024, Germany may be forced to reduce or even turn off industrial capacity. Habeck also noted that the country needs additional capacity, including a planned LNG terminal on Germany’s north coast, which will support supplies to both East Germany and Eastern Europe.