Germany: Essential Gas Demand Reductions for Winter 2024-2025

Germany's Initiative Energien Speichern (INES) warns that reductions in gas demand will be necessary despite high storage levels before the winter of 2024-2025.
Hiver 2024-2025 réduction demande gaz

Partagez:

Germany is preparing for a potentially difficult winter in terms of gas supplies. Although current storage levels are reassuring, with storage sites 84% full by July 9, 2024, INES has warned of the risks posed by an extremely cold winter. This situation could lead to a gas shortage, forcing the country to impose demand cuts to guarantee security of supply.
INES, which uses 2016 EU average temperatures for its forecasts, believes that extremely low temperatures, similar to those in the winter of 2010, could put a strain on gas reserves. In this context, consumer savings remain crucial to avoid shortages.

Storage measures and regulations

In response to Russia’s invasion of Ukraine in 2022, Germany has introduced strict gas storage rules. Sites must be 85% full by October 1, 2024, and 95% full by November 1, 2024. In addition, a minimum level of 40% must be maintained by February 1, 2025. These measures are designed to prevent shortages in the event of extreme weather conditions, and to guarantee sufficient reserves for the winter months.
Despite these precautions, INES estimates that increased consumption in October and November could necessitate drawing on reserves. In the event of normal to warm temperatures, storage sites could see their levels fall by between 35% and 69% by the end of winter in April 2025, while still complying with the legal February limits.

Diversification efforts and impact on prices

Germany’s strategy of diversifying its energy sources has intensified following the reduction in Russian gas imports. The government has leased five floating storage and regasification units (FSRUs) in Wilhelmshaven, Brunsbüttel, Stade and Lubmin. A new terminal is also planned for Mukran, with the recent arrival of the Neptune FSRU. Scheduled to begin commercial operations shortly, the terminal will have a total regasification capacity of 13.5 billion cubic meters per year, covering up to 15% of Germany’s total gas demand.
At the same time, gas prices in Europe continue to fall thanks to demand reduction efforts, robust storage levels and increased LNG deliveries. The Dutch TTF futures price was valued at €30.745/MWh on July 10, 2024, down 1.62% on the previous day.

Long-term consequences and reflections

Germany’s historic dependence on Russian gas imports has necessitated a significant adjustment to align with the EU’s REPowerEU initiative, which aims to phase out Russian fossil fuel imports by 2027. The transition to LNG and increased storage capacity are key elements of this strategy.
However, the question remains as to whether these measures will be sufficient to avert a crisis in the event of an exceptionally cold winter. The need to save energy and reduce gas demand will remain a priority for Germany in the years ahead, particularly in the face of climate uncertainty.

The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
Enbridge Gas Ohio is assessing its legal options following the Ohio regulator's decision to cut its revenues, citing potential threats to investment and future customer costs.
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.
After four years of interruption due to regional insecurity, TotalEnergies announces the upcoming resumption of its liquefied natural gas project in Mozambique, representing a $20bn investment.
The French group has acquired from PETRONAS stakes in several licences covering more than 100,000 km² off Malaysia and Indonesia, consolidating its Asian presence and its exposure to the liquefied natural gas market.