Germany must trigger gas emergency plans after Putin's rouble demands - energy industry
German energy companies have been rattled by Russian president Vladimir Putin鈥檚 that Moscow will only accept payments in roubles for gas deliveries to 鈥渦nfriendly countries鈥� as of next week. Responding to this move, the German Association of Energy and Water Industries (BDEW) called on the government to announce an 鈥渆arly warning alert鈥� on the country鈥檚 national emergency gas supply plan. 鈥淭here are concrete and serious indications that we are heading for a deterioration of the gas supply situation,鈥� said BDEW head Kerstine Andreae. Announcing the first of three crisis stages would emphasise the need for municipalities to prepare for a gas shortage, the Federal Network Agency (BNetzA) and the BDEW said.
Even before Putin鈥檚 announcement on Wednesday, which was widely as a way to undermine western sanctions on Russian banks and its currency, German authorities had begun drafting 聽a priority ranking and shutdown sequence for natural gas consumers. While it is clear that households, schools and firms providing essential social services will have to be protected, a sequence for industry is still wanting. Andreae that she was confident that an agreement would be ready for the coming winter.
In a first response, economy and climate minister Robert Habeck called Putin鈥檚 announcement 鈥渁 breach of contacts鈥� and added that 鈥渨e will discuss with our European partners a possible answer to Moscow鈥檚 announcement.鈥� Habeck that gas supply for this spring was guaranteed and that efforts were being made to find alternative sources. 鈥淚n this respect, I'm not very worried about it now. We still have to make provisions for next winter, but we are working on that at full speed,鈥� he said.
German energy companies surprised by Russia鈥檚 announcement
Germany鈥檚 major energy companies, such as RWE, EnBW and Uniper, which have running contracts with Russian gas suppliers, were surprised by Putin鈥檚 announcement, Tagesspiegel Background reports. Gas delivery contracts generally specify the currency in which the buyer pays the supplier in euros or dollars. So far, and despite the war, Russia has delivered gas according to existing contracts 鈥� and the German economy continues to depend on them. Changing gas supply contracts, which are confidential, is usually a difficult and drawn-out process, lawyers .
鈥淎s you know, completely replacing procurement in the short term in the event of a theoretical loss of Russian gas is not feasible for us, as it is for most market participants,鈥� EnBW CEO Frank Mastiaux on Wednesday morning before Putin鈥檚 announcement.
EnBW procured 20 percent of its natural gas via direct agreements with Russian suppliers in 2021. The company has two direct contracts with Russian suppliers, one of which, for a volume of 35 TWh, is due to expire at the end of this year, while the other one (65 TWh) is supposed to run till 2030.
According to news agency Reuters, RWE has agreed to purchase 15 TWh of Russian gas by 2023. Germany's total consumption of Russian gas was recently around 400 TWh per year.
Energy company Uniper told 威力彩玩法 they were not commenting on the issue for now.
Timm Kehler, head of industry association , said: "We have noted with great irritation the news that Russia wants to settle gas deliveries only in roubles. At this point in time, we cannot yet assess what concrete effects this will have on gas trade.鈥�
How will the European Union react?
European leaders are on 24 -25 March to discuss the next steps in the Ukraine, energy prices and security of supply crises. In a draft of their summit conclusions , the leaders will agree to "work together on the joint purchase of gas, LNG and hydrogen" ahead of next winter, and coordinate measures to fill gas storage.
