Source: Energy & Management Powernews, March 28, 2022
In its Energy Security Progress Report, the Commerce Department outlines timetables to cut back on coal, oil and gas from Russia. Meanwhile, the U.S. is making LNG commitments to Europe.
The German Federal Ministry of Economics (BMWK) presented an energy security progress report on March 25. "The first important milestones have been reached to free us from the clinging grip of Russian imports," said German Economics Minister Robert Habeck (Greens) at the presentation of the report. Progress has been made, he said, especially in oil and coal. "Companies are letting contracts with Russian suppliers expire, not renewing them, and switching to other suppliers," Habeck explained.
Prognosis for oil
So the dependence on Russian oil would drop from 34% to 25% in the coming weeks. By the middle of the year, Russian oil exports to Germany would likely be cut in half. "By the end of the year, we aim to be almost independent, the Vice Chancellor announced.
The situation with hard coal
Companies had also reorganized supply chains and switched contracts for hard coal. This would halve the dependency to around 25% in the next few weeks. This will take effect step by step as early as April, he said. "By the fall, we can become independent of Russian hard coal overall," Habeck promised.
Natural gas conversion "demanding"
He added that progress was also being made in the conversion of gas supplies, but the process is demanding. Germany gets 55% of its natural gas needs from Russian sources. That share dropped to 40% last month. "We will only manage to say goodbye to Russian gas with a joint effort - the federal government, states, municipalities, companies and private households together," the minister said. He said it would take
- the expansion of renewable generation,
- the consistent reduction of consumption at all levels,
- the diversification of supplies
- and the rapid ramp-up of hydrogen.
Then it would be possible to become largely independent of Russian gas by mid-2024,
"As the German government, we are doing everything we can to make this happen," Habeck announced. Among other things, he said, three floating liquefied natural gas (LNG) terminals have been secured, which the companies RWE and Uniper have optioned on behalf of the German government. He added that the German government is also accelerating the expansion of onshore LNG infrastructure and putting a major energy efficiency program on track. "Even if we become more independent of Russian imports, it is too early for an energy embargo at this point," the minister warned. The economic and social consequences would be too severe.
New gas sources on the horizon
Habeck was recently in Qatar, the world's largest LNG exporter, to secure additional supplies for German companies. The U.S. announced on the same day that it would supply an additional 15 billion cubic meters of LNG to the EU this year together with international partners (see separate report).
The Energy Security Progress Report of the BMWK is available online.
Author: Susanne Harmsen