Read news from:
Austria
SHARE
COPY LINK

UKRAINE

Germany releases billions to move away from Russian gas

Germany has released nearly three billion euros ($3.2 billion) to acquire floating liquefied natural gas import terminals, the finance ministry said Friday, as it seeks to move away from dependence on Russian gas.

Published: 16 April 2022 09:11 CEST
logo of Russian Gazprom's German subsidiary
A photo taken on April 5, 2022 shows the logo of Russian gas giant Gazprom's German subsidiary Gazprom Germania on their headquarters in Berlin, Germany. John MACDOUGALL / AFP

“Dependence on Russian energy imports must be reduced quickly and sustainably,” tweeted Finance Minister Christian Lindner.

“Floating LNG terminals make an important contribution to this, for which we must provide funding,” he added.

A total of 2.94 billion euros has been made available for the lease of these huge LNG carriers, the finance ministry told AFP.

Europe, and Germany in particular, is counting on LNG to reduce its dependence on Russian imports after Moscow’s invasion of Ukraine.

Some 20 countries export this liquefied gas which is transported by ship, and whose three largest suppliers are Australia, Qatar and the United States.

Liquefied to take up less space, the LNG is regasified on arrival for distribution.

The mobile terminals, known as Floating Storage Regasification Units (FSRU), allow for converting LNG carried by a tanker into gas and injecting it into the pipeline network.

Last week European countries announced expanded efforts to wean themselves off Russian gas.

Russia is a major fossil fuel producer and accounted for around 45 percent of the European Union’s gas imports last year, but the bloc is under pressure to impose sanctions on oil and gas imports from Moscow.

In recent years, Germany has imported an average of 55 percent of its gas from Russia via onshore pipelines.

This share was reduced to 40 percent by the end of the first quarter of 2022, in favour of higher imports from the Netherlands, Norway and of LNG, according to the economy ministry.

Unlike several European countries, however, Germany does not have an onshore terminal to process imported liquefied gas.

For the time being, it relies on terminals in other EU countries, which limits its import capacity.

According to German media reports, the government is considering, in conjunction with private partners, the rental of three or four ships that would be positioned in North Sea or Baltic ports for this purpose.

Some of these facilities could be in operation by next winter.

The government does not consider it realistic to be able to do without Russian gas before mid-2024.

READ ALSO:

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PRACTICAL TIPS

How German households can save on their electricity bills

Customers can save a high three-digit sum on their household electricity costs, according to calculations done by German price comparison portals. Here's why you may want to switch your tariff.

Published: 22 May 2024 11:23 CEST
Updated: 25 May 2024 14:04 CEST
How German households can save on their electricity bills

German households are overpaying for electricity by billions of euros each year, according to calculations carried out on the Verivox price comparison portal.

This is because nearly a quarter of households in Germany purchase electricity via the most expensive tariff group from their local supplier – the so-called ‘basic supply’, or Grundversorgung in German.

But in Germany, customers have energy tariff options, and saving hundreds on your energy bill can sometimes be as simple as checking your current tariff online and switching to a cheaper one in a matter of minutes.

Based on approximately ten million households consuming electricity from the basic supply, Verivox calculates that Germans are overpaying by about €5.5 billion annually. That’s because the average difference between basic supply rates and the cheapest local energy rates currently amounts to 20 cents per kilowatt hour (kWh).

What is the ‘basic supply’ for household energy?

Household electricity in Germany is purchased through different tariffs (Stromtarifs). Through these various tariffs, local energy companies offer different prices for electricity, depending on customer contracts.

The basic supply tariff for electricity can be thought of as the default. When a new house is connected to the energy grid, for example, its electricity will be provided via the basic supply unless the homeowner chooses another tariff option.

READ ALSO: How to change electricity and gas providers in Germany

The basic supply is intended to ensure that everyone has access to electricity, even if they haven’t shopped around for an energy provider on their own. It can also be advantageous in the short term because it can be cancelled at any time, as opposed to other tariffs which typically come with longer contracts.

But the basic supply is comparatively expensive. According to Verivox, basic supply electricity currently goes for an average of 44.36 cents per kilowatt hour (kWh), whereas the cheapest available rates on average come to 24.7 cents/kWh across Germany.

How much can you save?

At current rates, you can expect to save about 44 percent on your electricity bill if you switch from basic supply to the cheapest option with a price guarantee. 

That amounts to significant savings, considering that annual electricity costs regularly come to a few thousand euros in German households.

The Hamburger Abendblatt reported that a three-person household consuming 4,000 kWh would save an average of €786.

These prices will vary from provider to provider and from region to region. 

Keep in mind that choosing other tariff options often comes with some additional fees. Still, in many cases taking a look at different electricity tariff options can save households some money.

Also, switching tariffs is different from switching your energy provider. If you currently get basic supply electricity from Vattenfall, for example, you could potentially switch to a different tariff option while maintaining your business with them. But if you are between contracts, or currently on basic supply, you could also consider switching providers.

In this case, a comparison portal like Check24 can be useful to get an idea of which companies offer the best rates.

READ ALSO:

SHOW COMMENTS