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Germany steps up measures to conserve gas as Russia slows supply to Europe


BERLIN — Germany will restart coal-fired power plants and offer incentives to companies to limit natural gas consumption, marking a new step in the economic war between Europe and Russia.

Berlin announced the measures on Sunday after Russia cut off gas supplies to Europe last week as they defied European sanctions and provided military support to Ukraine.

The steps, part of a broader strategy initiated after the invasion of Ukraine, are aimed at reducing gas consumption and redirecting gas shipments to storage facilities to ensure that the country has adequate reserves. Stock up to get through the winter.

The gradual reduction of gas supplies by Russia has raising the specter of a potential fuel shortage if Europe enters winter with less than full reserves. It has also raised prices, putting more pressure on economies already grappling with high inflation, rising borrowing costs and the prospect of a recession.

Nord Stream, main channel for Russian fuel to Europereported a sharp drop in gas supplies.

“Clearly it is Putin’s strategy to bring us down, raise prices and divide us. We will not allow that. Robert Habeck, German Economy Minister said.

A natural gas storage facility in Germany. Russia’s gradual supply cuts have raised the specter of potential fuel shortages.


Image:

David Hecker / Getty Images

Gazprom was to blame shortage of missing turbine parts was stuck in Canada due to sanctions. European officials and analysts have dismissed the explanation.

Germany imports about 35% of its natural gas from Russia, down from 55% before the war, and is used mostly for heating and manufacturing, according to German government estimates. Last year, electricity generation using natural gas accounted for about 15% of total public electricity in Germany, Habeck said, adding that the share of gas in power generation is likely to have declined this year.

To accelerate the decline of gas in the electricity mix, Mr Habeck outlined a number of steps the government is taking to reduce reliance on gas and build stores for next winter.

In empowering a leader of the Green Party to protect the environment, which has campaigned to reduce fossil fuel use, Mr Habeck said the government would empower utility companies to expand the use of fossil fuels. use of coal-fired power plants.

This will ensure that Germany has an alternative source of energy but will further delay its efforts to cut its carbon footprint.

“It is bittersweet,” said Habeck of the need to depend on coal. “But in this situation, it is necessary to reduce gas consumption. Gas stations must be full in winter. That has the highest priority.”

Mr. Habeck said legislation affecting coal use is expected to be passed on July 8 in the Senate, the upper house. The measure expires on March 31, 2024, at which point the government hopes to create a sustainable alternative to Russian gas.

Mr. Habeck also said the government would introduce an auction system that could spur the industry to reduce consumption.

The government has not released details on how the auction will work, but Mr Habeck said it would start this summer.

Rising oil costs helped push up the national average price of a gallon of gasoline to $5 for the first time, and that led to increased inflationary pressures across the U.S. economy. Illustration: Todd Johnson

Habeck said the new measures are aimed at transferring dwindling gas from Russia to storage tanks for winter use. Germany is aiming to have 90% of its gas storage facilities by December. Currently, German gas storage facilities are about 56% full, Habeck said.

The measures build on a series of previously announced steps aimed at reducing Germany’s dependence on Russian gas. Under previously drawn up plans, the government could supply gas to industrial users if it ran out in winter.

The government has arranged to buy gas from non-Russian sources and is speeding up the construction of a liquefied natural gas station in the North Sea near Wilhelmshaven.

Mr. Habeck said that two of the four special ships planned to convert liquefied natural gas that could be supplied to Germany’s power grid will come online this winter, allowing the country to replenish its power supply. gas supply does not depend on Russia.

Write letter for William Boston at [email protected]

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