Factbox-How is Germany replacing Russian gas?

German govt postpones decision on gas price brake
German govt postpones decision on gas price brake   -   Copyright  Thomson Reuters 2022   -  
By Reuters

<div> <p><span class="caps">FRANKFURT</span> – Germany, Europe’s biggest economy and historically a major importer of Russian gas, is scrambling to secure alternative supplies following a plunge in flows from Russia since its invasion of Ukraine. Here is what Germany is doing: </p> <p><span class="caps">WHERE</span> <span class="caps">ARE</span> <span class="caps">THE</span> <span class="caps">REPLACEMENTS</span> <span class="caps">COMING</span> <span class="caps">FROM</span>?</p> <p>Germany is sourcing more gas from Benelux countries, Norway, and France.</p> <p>Germany imported 37.6% of gas from Norway in September compared with 19.2% in the same month last year, while Dutch deliveries climbed to 29.6% of imports from 13.7%, data from utility industry group <span class="caps">BDEW</span> showed.</p> <p>Russian volumes were zero in September, having accounted for 60% in September 2021, <span class="caps">BDEW</span> said. </p> <p><span class="caps">PRICES</span></p> <p>Benchmark front-month gas prices on the Dutch Title Transfer Facility (<span class="caps">TTF</span>) market have fallen 70% from August records, standing at 104 euros a megawatt hour (MWh). </p> <p>That is still 15% above a year ago but reflects the impact of the replacements.</p> <p>Underground gas storage caverns are 97.2% full.</p> <p><span class="caps">IMPORTERS</span>’ <span class="caps">STRATEGIES</span></p> <p>Stricken importer Uniper has said it is sourcing Norwegian, Dutch and Azeri gas via pipelines and using its global role as a trader of liquefied natural gas (<span class="caps">LNG</span>) to procure more of the super-cooled gas into north western Europe.</p> <p>In 2021, it turned over 350 seaborne <span class="caps">LNG</span> cargoes.</p> <p>EnBW subsidiary <span class="caps">VNG</span> says it has been replacing two Russian contracts totalling 10 billion cubic metres (bcm) per year since May with over-the-counter (<span class="caps">OTC</span>), bilateral and <span class="caps">LNG</span> deals with other countries, a strategy also pursued by Securing Energy for Europe (Sefe), formerly Gazprom Germania.</p> <p>In 2023, Sefe wants to source 20% of its portfolio in the form of <span class="caps">LNG</span> and has posted enquiries with many trade partners.</p> <p><span class="caps">LNG</span> <span class="caps">TERMINALS</span></p> <p>In the absence of <span class="caps">LNG</span> reception terminals, Germany is building floating <span class="caps">LNG</span> terminals (<span class="caps">FSRU</span>s), of which two will be ready at the turn of the year, in Brunsbuettel and Wilhelmshaven. Two more will follow at Stade and Lubmin.</p> <p>The four will have a total capacity of 22.5 bcm.</p> <p>A fifth <span class="caps">FSRU</span> is planned for winter 2023/24.</p> <p>In the long term, fixed onshore terminals will be built with a view to receiving gas, carbon-free hydrogen, and ammonia.</p> <p/> </div>