No shutdown of gas supply in Germany, Russia fulfills its obligations – German Ministry of the Economy
Germany is not experiencing any interruptions in its gas supply, the security of gas supply is ensured and Russia is fulfilling all its contractual obligations, the spokeswoman for the German Federal Ministry of Economy and Finance said on Monday. Energy, Annika Einhorn.
“We are monitoring the gas situation very closely. The security of gas supply has been ensured, there are no supply interruptions, ”she said.
According to her, the ministry is constantly developing mechanisms to secure its gas supply in the event of a crisis, which is done in cooperation with other EU member states on the basis of EU law.
Einhorn recalled that in Germany it is not the German government that decides on gas flows, but the market.
“Thus, we cannot comment on individual statements, especially from Russia. It should be done by the sellers and the actors operating in the market, ”she noted.
“According to our information, Russia is respecting its supply obligations,” she stressed.
“But, as already mentioned, the orders and the process of their implementation do not take place through us, so we cannot say anything more about this topic,” Einhorn added.
On December 25, Gazprom spokesman Sergey Kupriyanov said that a number of Gazprom customers in Europe, notably in France and Germany, had already chosen their annual contract volumes in 2021, so they were not submitting no more demands for gas supply. The representative of Gazprom also highlighted the data available on the physical transfer of gas from Germany to Poland and then to Ukraine in the amount of 3-5 million cubic meters per day.
Previously, Russian President Vladimir Putin said Gazprom was not reserving the capacities of the Yamal-Europe pipeline because there were no applications from European consumers. According to him, the reverse allows Europeans to resell gas purchased under long-term contracts. Gazprom also noted that the company supplies gas to Europe at consumer demand in accordance with existing contracts.
Gazprom began reducing the volume of reservations for gas transit through the Yamal-Europe pipeline two weeks ago. Since December 20, it has no longer reserved the gas pumping capacity through this pipeline at all. As a result, since December 21, the physical flow of gas through the pipeline has been going in the opposite direction from Germany to Poland.
Situation on the world gas market
The global gas market has been confronted this year with a shortage of supply in a context of strong recovery in Asian demand and a shortage of LNG capacity. Growing demand for gas in Asia pushed up prices and cut off most LNG supplies, exacerbating the crisis in Europe, where the situation was made worse by low reserves in gas storage facilities.
As a result of this, the price of gas at TTF’s Dutch hub for the first time exceeded the $ 1,000 mark per 1,000 cubic meters and in December reached over $ 2,000 per 1,000 cubic meters. However, the price of a TTF hub futures contract is volatile due to the speculative factor and does not reflect the actual price of physical deliveries to Europe. The average price of gas exports under Gazprom contracts in 2021 will be $ 280 per 1,000 cubic meters.