Germany: politicians shun fracking-option to mitigate gas import problems

As Germany is severley affected by the cut-back of russian piped gas and also in the light of ethical consideration the fracking-option, banned in 2017, is again put forward. However politicians and lawmakars are reluctant: WELT:

Germany is stuck in the natural gas crisis and is dependent on Russian supplies, which are being reduced. The focus is on Germany's own resources: Huge amounts of natural gas lie beneath Germany, which geologists say could supply the country for decades.

The energy reserves could be tapped by fracking. But the previous federal government banned the drilling technology in 2017, even though scientific reports had also shown fracking to be practicable in Germany.

The ban is not set in stone, according to the Water Resources Act it should be reconsidered: The German Bundestag was obliged to review the appropriateness of the fracking ban as early as 2021 - "on the basis of the current state of science and technology", as the law states . However: That did not happen – despite the gas crisis.

When asked by WELT, the Bundestag pointed out that the “Fracking Expert Commission” only submitted its report from 2021 at the end of June, on the basis of which advice should be given. The factions of the parties represented in the Bundestag would now decide when the parliamentary deliberations would take place.

Natural Gas: Germany considers LNG imports from Senegal

 With gas supply from russia becoming more precarious and ethically problematic, Germany is scouting around for new sources of supply. On his jorney through several african countries, germany Chancellor Olaf Scholz has explored options of gas exportations of gas from Senegal zu Germany. Climate advocates however find fault with this, WELT:

Senegal has big plans: The West African country wants to use the newly created gap in the gas supply and supply industrialized countries like Germany with liquefied natural gas (LNG) in the future.

According to estimates by the energy company BP, more than 425 billion cubic meters of natural gas are waiting to be extracted off the coast of Senegal and Mauritania. The local enthusiasm is great: “Experts consider the estimated gas resources in Senegal to be world-class. Senegal is on the way to becoming a major gas exporter,” says the Senegalese newspaper Le Quotidien.

Although the country has large gas reserves, it was only the Ukraine war and the move away from Russian gas that really revived hopes of a boom. "The war changed everything," quoted the Washington Post as Mamadou Fall Kane, deputy chief of Senegal's natural resources agency. "Now Europe is knocking on our door."

Because after Africa was asked for years by the European Union, for example, to rely on renewable energies, the energy crisis is now also focusing on fossil fuels again in industrialized countries that want to free themselves from dependence on Russia.

The federal government is also positioning itself: during his trip to Africa in May, Chancellor Olaf Scholz (SPD) campaigned in Senegal for closer cooperation on the expansion of the gas infrastructure. It makes sense to "follow closely" such cooperation, this is a "common concern," Scholz said after talks with Senegalese President Macky Sall in Dakar. "We also want to do this with regard to the LNG issue and gas production here in Senegal."

At first glance, that sounds like a win-win situation: African gas can put Germany's energy supply on a broader footing. In return, Senegal could benefit if liquid gas terminals are built with the technical know-how from Germany.

In reality, however, the project is more complicated.

Gas: tortuous manoeuvering for gas transports between Spain, Morocco and Algeria

 The tensions between Morocco and Algeria on the issue of Western Sahara make gas shipments to a very tricky question. In reason of Spain's support for the moroccon position, Algeria has stopped every gas supply to Spain through the Maghred-Europe Gas Pipeline (MEG) and interdicted all shipments to Morocco from Spain of algerian gas, source Le Monde:

Spain began, for the very first time, to transport gas to Morocco through the Maghred-Europe Gas Pipeline (MEG), assuring that it was not Algerian gas, while Algeria does not supply plus the GME to Spain since the end of October 2021 against the backdrop of the diplomatic crisis.

“On the basis of commercial relations and good neighborliness, yesterday [Tuesday] the first shipment by the Maghreb gas pipeline of LNG [liquefied natural gas] previously acquired by Morocco on international markets and landed in a regasification plant took place. Spain,” sources from the Spanish Ministry for Ecological Transition told AFP.

Spain had announced in February that it would re-export gas to Morocco via the GME, which Algeria no longer supplies to Spain through Moroccan territory since the end of October 2021 due to a diplomatic crisis around of Western Sahara. “A certification process guarantees that this gas [routed from Spain to Morocco] is not of Algerian origin,” the same source told AFP.

Algiers had threatened in April to break its gas supply contract with Spain if Madrid were to transport Algerian gas "to a third destination", an implicit reference to Morocco.

Gas: Italy shifts to Algeria for gas procurement

Eager to divest itself von Russian dependance on natural gas, Italy has switched in a precipitous move to Algeria as a supplier just days after the russian invasion into Ukraine. Italy and especially its energy giant ENI have deep and decade-old ties to Algeria. Even major investements by ENI and acquisitions of BP shares on oil fields are under discussion, Le Monde: 

Algeria is showing a diplomatic upturn with Italy which takes on a particular meaning as Europe is prospecting for alternatives to Russian gas, war in Ukraine obliges. The recent ballets of visits by Italian officials to Algiers, where the red carpet is rolled out at the energy giant Ente Nazionale Idrocarburi (ENI) – already historically well treated – testify to a most cordial atmosphere. Italy had become, in recent years, increasingly dependent on Russian energy supplies (40% of its gas imports, or about 30 billion cubic meters [m3]). It is now more than ever eyeing Algerian gas, while it is imperative for it to diversify its purchases abroad, particularly in the Mediterranean.

The overall economic relationship between the two countries has certainly always been healthy. Italy is Algeria's third supplier (behind China and France) and its first customer (ahead of France and Spain). It is also the first foreign investor, a status due to the weight that ENI represents on Algerian soil. History is a big part of it. The tutelary figure of the historic leader of the company, Enrico Mattei (1906-1962), a Christian Democrat politician who was a great promoter of independent Algeria (who died in 1962 after a mysterious plane crash), has always acted bridge between the two countries.

“ENI is a company considered to be a friend of Algeria, a friend of the Algerian revolution at the time, notes Akram Kharief, Algerian security expert and founder of the Menadefense site. It is very difficult to compete with her. In recent weeks, the glorification in the Algerian press of this memory has reached unprecedented levels. "The esteem for Italy is felt among the people of the people", could we read, on March 30, in an editorial of the official daily El Moudjahid.

The staging, in Algiers, of friendship with Italy does not date from the war in Ukraine. The distinguished welcome reserved in the Algerian capital for the Italian President of the Republic, Sergio Mattarella, during a visit in November 2021, had already sent a first message in the midst of the crisis between Algiers and Paris. The recent Algerian-Spanish turbulence on the Western Sahara issue – following concessions made by Madrid to Rabat – has added to the ambient Italophilia in Algeria. The remarks of the boss of the Algerian public company Sonatrach, Toufik Hakkar, on April 1, evoking the possibility of "recalculating" the price of gas sold to the Spaniards, announce a probable changeover in the long term of part of the supplies from Spain to Italy.

This is fitting, at a time of Rome's strategic shift vis-à-vis Russian gas dictated by urgency. As usual, Italian diplomacy negotiated it in a few hours, with a mixture of agility and pragmatism. Monday, February 28, barely four days after the start of the Russian offensive in Ukraine, the Italian Foreign Minister, Luigi Di Maio, was in Algiers, accompanied in particular by the managing director of the energy giant ENI, Claudio Descalzi, to to assess the possibility of increasing gas imports. In energy matters, Italian diplomacy and ENI are used to moving forward together.

Exploitation of new deposits

In the Algerian case, the calculation is simple. Algeria is the country's second largest supplier (21 billion m³), ​​and the Transmed gas pipeline transporting gas to Sicily – also called the Enrico Mattei gas pipeline – is not operating at full capacity (its capacity is 30 billion m³ per year) . What hope, in the short and medium term, additional deliveries.

The Italian minister's trip to Algiers was only the start of a tour centered on energy issues, which took the head of Italian diplomacy, in March, to Africa, the Arabo-Persian Gulf and Azerbaijan. But Algeria is considered, within Italian diplomacy, with particular attention.

So Claudio Descalzi was back in Algeria on April 3 to meet once again the CEO of the Algerian public energy giant, Sonatrach, ENI's historic partner, to discuss the increases in deliveries in the short term and, at a further afield, the exploitation of new deposits. In particular, it is a question of “accelerating” the implementation of joint projects in the region of Berkine Sud, on the border with Tunisia. According to the Algerian press, ENI is also negotiating the acquisition of assets from British Petroleum (BP) in two major gas projects in In Saleh (Centre) and In Amenas (East). According to unconfirmed information, Sonatrach is also discussing the acquisition of ENI assets in Russia.

Be that as it may, the prospect for Algeria to deliver significant quantities of gas to Italy is long term. In the immediate term, its production and transport potential is limited. "Algeria's ability to offset Russian gas for Europeans is questionable," says Olivier Appert, energy and climate center adviser at the French Institute for International Relations (IFRI). Faced with the aging of its infrastructure and the flight of its domestic consumption, Algeria has in fact suffered from a continuous decline in its gas exports, which have fallen from 64 billion m3 in 2005 to 41 billion in 2020. substantial investments to reverse the curve. ENI and the Italians are in the running.

Europe: Anti-fracking NGO's received russian money

Investigations by different media suggest that european environmental NGO's opposed to fracking received money injections from russian sources, WELT:

The interests of western climate protectionists and the Russian dictator Vladimir Putin coincide, albeit for very different reasons: slowing down the promotion of fossil fuels in western countries is their common goal. For the activists, this is a stage on the way to a CO₂-free industrial society, for Putin, whose country benefits enormously from the international oil and gas business, it is an important trump card.

For years there have been indications that Moscow is supporting activists in the US and Europe in their fight against fossil fuels in order to be able to sell Russian gas and oil better. In the mid-2000s, the Kremlin decided to fill what it called a “value vacuum”: using so-called “soft power” to place its own views and interests in other countries. According to various sources, Russia also financed non-governmental organizations (NGOs) in Europe and the USA in order to push through its agenda.

Many NGOs enjoy special rights in the West: the EU and the United Nations grant environmental organizations extensive legal standing and information rights. Germany grants many organizations the tax-privileged status of "non-profit". As a rule, the NGOs do not have to disclose where they get their money from.

Researchers who analyzed NGO funding on behalf of the European Parliament in 2016 had to admit their failure: "The analysis reveals a complex web of intertwined NGOs, linked by the membership of numerous overlapping networks that pursue many different purposes," she said Conclusion. “It is often difficult to identify which organization in a network is engaged in which activities, or how grants flow between them in relation to those activities.”

There is an "obvious gap between NGOs' declared commitment to accountability and transparency and actual practice," the researchers concluded. Entries in the transparency register of the EU would mostly be avoided. It often remains unclear what interests the funders of the associations really have.

Anyone who demands insight into the funding of NGOs is therefore dependent on key witnesses. The Russian government has transferred 82 million euros to European climate protection associations whose aim is to prevent natural gas production in Europe, an informant told scientists at the Martens Center for European Studies.

Former NATO Secretary General Anders Fogh Rasmussen reported back in 2014 that Russia had supported environmental organizations "in order to maintain European dependence on Russian gas". "What are they smoking at NATO headquarters to spread such accusations?" Greenpeace countered the allegations. Due to the lack of transparency of the money flows described, it is not possible to make a conclusive, independent assessment of whether they are correct or not.

At least NATO stuck to their description. "We share the concern of some allies that Russia may seek to impede potential shale gas exploration projects in Europe in order to maintain Europe's dependence on Russian gas," a NATO official told Foreign Policy. Experts have puzzled over the "sudden" emergence of well-organized anti-fracking environmental groups in Eastern Europe, where Russia has been selling its energy but previously had no public concerns about natural gas production, the magazine wrote.

Fracking, which involves breaking up rock in the ground with a liquid to produce gas, has gotten a bad rap, although it's been tried and tested for decades with few problems now. Former US Secretary of State Hillary Clinton had also advocated fracking, but reported unusual resistance. In a private speech in 2016, made public by Wikileaks, she lamented: "We were dealing with fake environmental groups, and I'm a big environmentalist, but they were funded by the Russians."

American security expert Fiona Hill, former director for Europe and Russia on the Trump administration's National Security Council, reported on a conversation with Putin in November 2011 in which he made it clear to experts and journalists that he saw fracking in the US as a "major threat of Russian interests”. "We were struck by how much emphasis he put on the subject," Hill said.

American media reported on documents that were supposed to show that energy managers from Russian companies had transferred millions to American environmental organizations - which they, however, rejected. Representatives of American energy companies also accused the Kremlin of covert financing of climate protection groups. "Russia is funding the anti-fracking movement in the US," the head of Continental Resources claimed.

Climate and environmental protection organizations distributed misleading films of places where fracking is being done: Drinking water from the tap was burning, toxic gases and chemicals were seeping out of the ground, and entire regions were contaminated. Mass media picked up on the scenarios, particularly aggressively by the Russian channel “Russia Today”.

He labeled fracking companies as child molesters, falsely claiming natural gas extraction would cause cancer in children. A US National Security Agency report saw Putin's people behind the reports, which "probably reflected the Russian government's concerns about US natural gas production and potential challenges to Gazprom's profitability." "We have seen Gazprom funding from environmental NGOs," agrees Dominique Reynié of the Fondation pour L'innovation politique, a French research institute.

After Germany's decision to phase out nuclear energy, Gazprom celebrated "building new, modern gas-fired power plants in Germany". However, the expansion of fracking in the USA worried the Russian competition: the Americans had achieved a decisive turnaround by intensifying natural gas production by fracking in their own country - with positive consequences for the climate. The USA has been able to reduce its CO₂ emissions more than almost any other country in the past 15 years because it has replaced coal with cracked natural gas, which releases much less CO₂.

Europe also has immense shale gas resources. The EU Commission states that gas contained in shale rock using fracking "can contribute to the security of supply of the EU and its competitiveness". In the 2000s, the big energy companies in Europe were ready to develop domestic natural gas.

But the resources remained in the ground, the pressure from climate activists on companies and governments led to investors turning away, the investment bank Goldman Sachs determined. The Financial Times and recently the New York Times came to the same conclusion.

Exploration of new gas fields in Europe collapsed, including in Great Britain, which has particularly rich shale gas resources. Not only NGOs, but also scientific institutes cheered the trend. For example, the Grantham Research Institute on Climate Change of the London School of Economics recently called for the end of all domestic oil and gas exploration.

The market is now "fixated on climate change and the dwindling appetite for fossil fuels," wrote financial news agency Bloomberg. Share prices of companies that said they would expand their production of gas and oil came under pressure; Apparently, investors feared damage to their image. In the Netherlands, a court ordered the energy company Shell to reduce its CO₂ emissions, which further slowed exploration efforts.

The great opposition to natural gas production in Europe made gas from Russia attractive. Europe has radically reduced its production of conventional natural gas: 15 years ago it produced more gas than Russia exported, now Russia exports three times more natural gas than Europe produces. From 2015 to 2019 alone, Russia was able to increase its natural gas imports to Europe by a third. The continent now covers around 40 percent of its needs with Russian natural gas.

The market is now "fixated on climate change and the dwindling appetite for fossil fuels," wrote financial news agency Bloomberg. Share prices of companies that said they would expand their production of gas and oil came under pressure; Apparently, investors feared damage to their image. In the Netherlands, a court ordered the energy company Shell to reduce its CO₂ emissions, which further slowed exploration efforts.

The great opposition to natural gas production in Europe made gas from Russia attractive. Europe has radically reduced its production of conventional natural gas: 15 years ago it produced more gas than Russia exported, now Russia exports three times more natural gas than Europe produces. From 2015 to 2019 alone, Russia was able to increase its natural gas imports to Europe by a third. The continent now covers around 40 percent of its needs with Russian natural gas.

In recent years, Germany has relied particularly consistently on Russian energy. It phased out nuclear power, but did not allow terminals for gas shipments by ship from the US, instead planning dozens of new gas-fired power plants. The intended main supplier: Russia.

When former US President Donald Trump declared in 2018 that Germany had become dependent on Russia for its energy supply, German diplomats laughed at him. At the latest, however, the Russian invasion of Ukraine revealed Germany's dependency relentlessly. Chancellor Olaf Scholz (SPD) said Germany was dependent on Russian gas. If no more gas came from Russia, there would be a risk of “damage to society as much as possible,” said Economics Minister Robert Habeck (Green Party).

In the USA, too, the new government of President Joe Biden has meanwhile made a change. On his first day in office, Biden stopped the Keystone XL pipeline, which was supposed to transport oil from Canada 3,500 kilometers to the United States, after protests by activists. After the import stop for Russian oil, the President now has to put up with the accusation of endangering the supply security of the USA.

The result of the fight against natural gas production in Europe and the USA is sobering, it has not served climate protection. Natural gas is still burned, it only comes from Russia. Nuclear power plants were shut down in favor of natural gas. The war in Ukraine also makes natural gas more expensive, so that the demand for coal increases, which causes CO₂ emissions to rise more sharply. In Germany, the green economics minister is considering letting coal-fired power plants run longer due to a lack of alternatives to Russian gas.

British Prime Minister Boris Johnson, on the other hand, is now considering starting fracking in his country. Russia is no longer a reliable source, it is important to ensure the energy supply. The climate protection group Extinction Rebellion has announced that it will soon occupy oil refineries in Great Britain. "Fossil energies must be stopped once and for all," declared the activists. "Now is the time, this is the moment".

Europe: members of the Bloc sound ways to end dependency from russian gas

 The measures are planned to be effective by the end of the year, WELT:

The pressure on the EU states to impose an embargo on Russian energy supplies is increasing. The heads of state and government meeting in Brussels on Thursday will also argue about this issue again. It is very unlikely that they will agree on a gas embargo this week. But the pressure will remain.

The European Commission, the EU's powerful administration, is therefore already preparing for a possible supply freeze for oil and gas from Russia – even in the event that Russia stops supplies of its own accord.

Russia accepts payment for gas supply only in rubles

 WELT:

In the future, customers in Germany and other EU countries will have to pay in rubles for gas deliveries from Russia. Russian President Vladimir Putin on Wednesday instructed the government to stop accepting payments in dollars or euros. Deliveries would continue to be fully guaranteed, the Kremlin chief assured in a government video conference that was broadcast on state television.

The "unfriendly states" blacklisted by Russia are affected. This includes Germany and all other EU countries, but also the USA, Canada and Great Britain.

The announcement promptly strengthened the Russian currency, which is under massive pressure. The move could therefore also aim to support the ruble exchange rate. Gas companies would first have to buy rubles on the foreign exchange market.

The central bank and the Russian government now have a week to determine the modalities for switching from foreign exchange to ruble payments, Putin said. The West itself has devalued its currencies by freezing Russian assets abroad.

"Escalation of the Economic War"

"This is an escalation of the economic war," Jens Südekum, a member of the scientific advisory board of the Federal Ministry of Economics and Technology, told the Reuters news agency. "Not many expected this broadside."

For Südekum, this represents a clear breach of contract. "There are long-term contracts for gas supplies that are denominated in dollars," said the professor at the Institute for Competition Economics at Heinrich Heine University in Düsseldorf. "If Putin now declares that he only accepts rubles, he is breaking these contracts." The West will now have to react in some way. "An embargo on energy imports from Russia has now become more likely."

If the West followed Russia's request, it would have to circumvent its own sanctions over the war against Ukraine and take rubles from the Russian central bank. "But it was actually sanctioned," said Südekum. "That's why you can't actually do that."

As a reaction to the sanctions imposed by the West, the Russian government had already decided at the beginning of the month that its own financial obligations to "unfriendly states" would only be settled in rubles. These include Ukraine, Switzerland and Japan.

Germany: chairman of industry association warns: gas network ill-equipped for LNG flows

 The chairman of Federation of German Industries (Bundesverband der Deutschen Industrie) issues a warning about a complete embargo on oil and gas from Russia. This could, according to his statement, generate a severe recession in Germany and Europe. Furthermore the european gas network is not ready for transporting LNG through Europe, SPON:

Forgoing imports of Russian gas and oil in the short term would cause massive damage to European industrial companies, according to the Federation of German Industries (BDI). "The EU is not prepared for a short-term, comprehensive energy embargo," BDI President Siegfried Russwurm told SPIEGEL. “In doing so, it would jeopardize its unity and ability to act economically and politically.” If there were no energy supplies, production stops threatened with unforeseeable consequences for supply chains and employment.

A boycott of Russian gas supplies would threaten the entire EU with a "structural test," Russwurm continued. Because the European gas network has not yet been designed for gas flows from West to East. "It is unclear whether, if Russian gas supplies are stopped, liquefied gas that ends up in the Netherlands or Belgium will find its way to the Czech Republic or Slovakia," said Russwurm. A gas embargo would cause disruption to production, loss of employment and, in some cases, massive damage to production facilities. A number of other business associations had already warned of this.

A boycott of Russian gas supplies would threaten the entire EU with a "structural test," Russwurm continued. Because the European gas network has not yet been designed for gas flows from West to East. "It is unclear whether, if Russian gas supplies are stopped, liquefied gas that ends up in the Netherlands or Belgium will find its way to the Czech Republic or Slovakia," said Russwurm. A gas embargo would cause disruption to production, loss of employment and, in some cases, massive damage to production facilities. A number of other business associations had already warned of this.

"We support the sanctions imposed on Russia by the western allies," said BDI President Russwurm. »We are aware that further harsh and unequivocal reactions may have to follow.«

Germany: Shell is first key account for LNG-terminal in Brunsbüttel

 The LNG-terminal in Brunsbüttel on Germany's north coast is in the planning stage since several years. The russian invasion into Ukraine could accelerate the completion. The operating company can introduce a major customer, the multinational oil and gas company Shell, writes SPON:

The operating company of the German Railway Terminals in Brunsbüttel has a large shopping center in the country. A statement stating that "the shell of a substantial part of the capacity of the terminals in the Brunswüttel for imports from LNG is free of charge", according to the German LNG Terminal GmbH mit. "Beide the pages of the work of the Daran, Umfang and Dauer of the partnership can be highly contracted to be united."

The Terminal is located in 2026 in operation and has a capacity of billions of cubic meters of gas. Long-lived for the import of green water-based derivatives, ammonia is also available.

Gas: Spain positions itself as gas hub; wants to revitalize MidCat pipeline

 In view of the war in Ukraine and the sudden turnaround in gas procurement Spain positions itself as gas hub. Indeed it has a direct gas pipeline to Algeria (Medgaz) and has also the biggest LNG stocking capacity in Europe. Spanish government suggest the reconsideration of the MidCat pipeline (planned from Portugal, through Spain and the Pyrenees to France) that was abandoned in 2019 to compensate the unwelcomed gas from Russia, Le Monde:

While Europe seeks to reduce its dependence on Russian gas, Spain intends to position itself as a strategic "hub" to diversify the continent's supply sources. "We can be an alternative to Russian gas," insisted the Ministry of Foreign Affairs, from the beginning of February, even before the invasion in Ukraine. The idea has since caught on. “With its great energy capacity and its great experience in renewable energies, Spain can and will play an important role in supplying Europe, finally confirmed the President of the European Commission, Ursula von der Leyen, on a visit to Madrid. , March 5. And, for this, we must work in the interconnections between the Iberian Peninsula and the rest of the European Union [EU]. »

LNG: Germany preparing for LNG imports

 With Russia as designated gas provider falling out due to the russian invasion of Ukraine and president Putin's unpredictable behaviour, Germany is carrying out a change in gas import, more precisely turning to US LNG (WELT):

On the high seas, in the middle of the Indian Ocean, the "Minerva Chios" suddenly changed course. The ship came from the USA and was almost there, but then it turned 180 degrees, turning from south-east to north-west. The captain had been assigned a new port. He should no longer head for Asia, as originally planned, but for Rotterdam. Apparently someone in Europe was offering more money for their cargo.

The "Minerva Chios" was loaded with liquid gas or "Liquefied Natural Gas", as it is called in the industry, LNG for short. These three letters have been at the center of world politics since the beginning of the Ukraine crisis. It's about the question of where millions of Europeans should get the raw material with which they heat and operate many of their power plants.

Because Russia, the most important gas supplier for Germany and the entire continent, has made itself an outsider by attacking Ukraine. An unpredictable aggressor who can no longer be trusted. Germany must look for alternatives to Russian natural gas, says Federal Minister of Economics Robert Habeck (Greens), otherwise you will become "a pawn".

Germany: chancellor announces construction of two LNG terminals

 In the light of the russian invasion into Ukraine german chancellor Olaf Scholz operates a reversal of the german energy policy. In a government declaration chancellor Scholz announced alongside a considerable raise of the defefense spendung also the construction of two LNG terminals, namely in Wilhelmshaven and Brunsbuttel where terminals never got beyond the project phase. WELT:

Chancellor Olaf Scholz (SPD) has announced a massive increase in German defense spending in response to the Russian attack on Ukraine.

The 2022 federal budget should be provided with a one-time special fund of 100 billion euros for “necessary investments and armament projects”, said Scholz in his government statement on Sunday in the Bundestag. He added: "From now on we will invest more than two percent of the gross domestic product in our defense every year."

To reduce dependence on Russian natural gas, Scholz announced the construction of two liquefied natural gas (LNG) terminals in Germany, naming Brunsbüttel and Wilhelmshaven in Schleswig-Holstein and Lower Saxony as locations. In addition, a coal and gas reserve should be built up.

An LNG terminal that receives gas today can also receive green hydrogen tomorrow, said Scholz. Although there are many terminals for liquefied natural gas in the EU, which comes from the USA or Qatar, for example, there have not been any in Germany so far.

Nord Stream 2: german chancellor stops pipeline project in reaction of russian invasion into Ukraine

 WELT:

As a reaction to the Russian actions towards Ukraine, the federal government is stopping the Nord Stream 2 pipeline project. Chancellor Olaf Scholz (SPD ) on Tuesday in Berlin. "And without this certification, Nord Stream 2 cannot go into operation."

Scholz condemned President Vladimir Putin's decision to recognize the self-proclaimed People's Republics of Luhansk and Donetsk as independent states as a serious breach of international law. With his actions in eastern Ukraine, Putin is not only breaking the Minsk Agreement, but also the UN Charter, which provides for the preservation of the territorial integrity and sovereignty of states.

France: France Braces For Blackouts As Gas Stockpiles Dwindle

Oilprice.com: 

The Brits aren't the only European nation to find itself on the verge of a full-blown energy crisis. On Thursday, French natural gas pipeline operator GRTgaz warned that French gas stockpiles are much lower at this point in the year than they have been during years past - and as a result, they run the risk of potentially being depleted before the winter is up, a disaster that could make last year's deep freeze in Texas look tame if a sudden cold snap sends demand soaring.

According to data from Gas Infrastructure Europe, France’s stockpiles were about 34% full as of Feb. 1, which is well below the five-year average of 42%. Inventories are now at the lowest seasonal level since 2018, when a brutal winter cold snap nicknamed "the Beast from the East" left French reserves standing at just 3% when the heating season was over.

"We’ll probably be close to zero toward the end of March, and we remain vigilant on that topic," GRTgaz chief Thierry Trouve said in a presentation in Paris Thursday.

You can read the rest of the piece via the below link:

https://oilprice.com/Energy/Natural-Gas/France-Braces-For-Blackouts-As-Gas-Stockpiles-Dwindle.html

Netherlands: gas orders from Germany lead to discontent in dutch population

 Residents of the Groningen gas field suffer from earthquakes as a consequence of the year-long gas production. Germany however has ordered a higher amount of gas from the field that was bound to be shut down in 2026. The dutch side blame Germany to shift their problems to the Netherlands, hinting at the stagnating certification process of contentious Nord Stream 2 pipeline (WELT):

When René Paas, the Dutch King's commissioner for the province of Groningen, travels to the seat of government in The Hague, every conversation begins with the question: What's the situation with the gas field? That's how he tells WELT on the phone. "Groningen has been associated with the gas production there and the associated problems for years."

Because of gas production, since the 1990s there have been an increasing number of smaller earthquakes that cause damage to residential buildings. In response to the loud protests of the Groningen population, the Dutch cabinet finally decided to initially reduce the subsidy significantly and then stop it in mid-2022. Gas production in Groningen will only continue until 2026 as an emergency solution for cold winters.

A project that Germany is now thwarting. As the “Spiegel” reported, German suppliers have probably ordered 1.1 billion cubic meters more gas for the 2021/22 financial year than planned. In addition, the commissioning of a nitrogen factory, which is to process imported gas for Dutch households in the future, has been delayed.

EU: EU commission wants to classify nuclear and gas as climate friendly energies

 Right before the release of the EU taxonomy for sustainable activities, also called green taxonomy in january, information got out that the EU commission - pressured by France and Poland - wants to rate nuclear and natural gas as climate friendly energies. Politicians of the Green party are upsed, writes WELT:

The EU Commission wants to classify energy generation from natural gas and nuclear plants as climate-friendly. According to a draft ordinance by the Brussels authority, permits issued for new nuclear power plants by 2045 should come under the so-called taxonomy ordinance and construction should be subsidized accordingly. For new gas infrastructure, this should apply under certain conditions until 2030.

The taxonomy is a kind of classification of sustainable economic activities and is equivalent to a classification as worthy of funding and a recommendation to investors. The EU Commission had already presented the corresponding legal act in April. At the time, however, the authority left out the delicate question of assessing gas and nuclear energy. We should await further expert reports and evaluations.

Germany: consumers hit by high gas and electricity prices; myth of cheap renewables

 As three nuclear power plants have been shut down on new year's eve consumers face skyrocketing prices for gas and elecricity. Consumers pay the price of the energy change in Germany, writes WELT:

Many consumers eager to shop are impatiently waiting for the bargain day called “Black Friday” in the coming week. According to an old tradition, on the last weekend in November you can buy new electricity guzzlers for the household particularly cheaply. But already this week, a completely different “Black Friday” on the energy market may not leave much of the shopping appetite of many shoppers.

Because energy suppliers who want to change their electricity and gas prices on January 1st must, according to the law, announce this six weeks in advance, that is: on the Friday of the week that ends. The announced price increases are likely to trigger a real energy price shock for many.

Gas crisis: American LNG coming to Europe

 As european countries struggle with high energy prices along with empty gas reservoirs, Cheniere Energy is sending providential LNG tankers to Europe. Gas prices drop, writes WELT:

Is it the spirit of Christmas or the invisible hand of the market? The fill levels in German and European gas storage facilities are at an all-time low, energy prices jump to new, alarming record levels every day - a fleet of American gas tankers appears on the western horizon as a savior in an emergency to alleviate Europe's energy poverty.

What sounds like a Christmas fairy tale is reality: According to information from the Bloomberg news agency, at least ten tankers with liquefied gas are on their way to Europe. "Another 20 ships seem to be crossing the Atlantic, but have not yet announced their final destination," report the market watchers. "The US cargoes will help offset the lower shipments from Russia, Europe's main supplier."

is it the spirit of Christmas or the invisible hand of the market? The fill levels in German and European gas storage facilities are at an all-time low, energy prices jump to new, alarming record levels every day - a fleet of American gas tankers appears on the western horizon as a savior in an emergency to alleviate Europe's energy poverty.

Germany: Russia curbs gas supply; retaliation for murder verdict?

 No more gas is flowing from Russia via Belarus to Germany since sunday. Some experts see this as an expression of disapproval by the Kremlin for the murder verdict against the russian hitman that killed a chechen individual in Berlin in 2019 and the restive attitude of newly appointed foreign minister Annalena Baerbock, writes BILD:

He did it again!

Russian President Vladimir Putin (69) has turned off the gas. Since Sunday, no more Russian gas has flowed to Germany via Belarus and Poland.

▶ ︎ “For commercial reasons”, as they say from Moscow, but experts see a different reason for turning the gas tap on again in the direction of the Federal Republic of Germany.

The Poles were the first to notice last Friday that something was wrong with the gas deliveries via the Yamal pipeline of the Russian state-owned company Gazprom. At around 5 a.m., the pressure in the pipeline dropped, initially by only about ten percent, and then by another 90 percent on Saturday morning.

Germany: EU plans thwart Germany's energy shift

 EU guidelines with very strict precepts on gas power plants could lead Germany to extend the operating time of coal power plants the government wanted to give up by 2030, reports WELT:

The new federal government would like to "ideally" bring the coal phase-out in Germany forward from 2038 to 2030. But the traffic light coalition partners encounter immense problems right at the beginning of their project. In addition to the even declining production of renewable energies, new specifications from Brussels threaten to make it more difficult to achieve the targets.

The starting position for the planned energy transition turbo of the new federal government deteriorated considerably on Wednesday: According to the latest figures from the German Association of Energy and Water Management (BDEW), the goal of achieving 80 percent green electricity in Germany by 2030 has become little more unrealistic. Accordingly, the share of renewable energies in gross electricity consumption has even shrunk from 46 percent to 42 percent this year. The main reason for this was poor wind conditions.

It is therefore ruled out in specialist circles that renewable energies can replace the capacities of coal and nuclear power that will be lost in the near future. Almost every study on the achievement of the German energy transition targets assumes that gas-fired power plants will have to be built to a considerable extent by 2030 in order to be able to temporarily close the electricity gap.