German officials are considering alternatives to Russian gas for Gazprom installations in Germany.
BERLIN (Reuters) -German energy companies that have been hurt by sanctions from the Kremlin have been able to find alternatives to Russian gas, said Economy Minister Robert Habeck on Thursday. He also said that the network regulator will provide more information on the subject.
Russia has slapped sanctions largely on European businesses of state-owned Gazprom (MCX: GAZP), including Gazprom Germania, an energy trading, storage, and transmission firm that Germany put under trusteeship last month to safeguard supplies.
“Gazprom and its subsidaries are harmed,” Habeck told the Bundestag lower chamber. “This implies some of the subsidiaries are receiving no more gas from Russia.” But the market is supplying alternatives. They are getting gas on the market.“
Energy prices went up on Wednesday because of Russia’s sanctions and a plan by the EU to stop importing oil from Russia. This showed the economic effects of the EU’s move to get away from Russian energy supplies in response to the Ukraine invasion.
The edict signed by President Vladimir Putin restricts the transfer of goods and raw materials to people and businesses on the sanctions list, which includes the Polish segment of the Yamal pipeline that supplies Russian gas to Europe.
The European Union – which buys one-third of its gas from Russia—is divided on the timing and extent of a phase-out of Russian energy imports. Hungary has rejected an embargo on Russian oil.
“We are following the issue. We have prepared ourselves for the circumstances. The regulator will notify you later today, “stated Habeck. “But the situation is such that the market is able to compensate for Russian gas. This fight indicates that energy is a weapon. “
On Russia’s list is the largest gas storage facility in Germany, which is in Rehden, Lower Saxony. It has a capacity of 4 billion cubic metres and is run by Astora. Also on Russia’s list is Wingas, a trader that supplies industry and municipal utilities.
Wingas has said that it will keep working under the new rules, but there may be shortages.
Rivals Uniper, VNG or RWE might be possible suppliers of supply to the market.
Michael Mueller, the CFO of RWE, said that the sanctions had not hurt the gas storage facilities of his company.
“In anticipation of a prospective gas embargo, we have made measures for our Russian supply contracts,” he stated. “At the outset of the conflict, we had contracted a total of 15 terawatt hours through 2023. We have now lowered our exposure to fewer than 4 terawatt hours.“