INES: Germany at risk of gas shortage in coming years

Germany will continue to be at risk of gas shortages through the winter of 2026/2027 unless measures are taken to increase LNG terminals, additional gas storage capacity or pipelines, German gas storage operator group INES said in its August gas update released Thursday, Oilprice.com reported on August 10th.

Sebastian Bleschke, head of INES, said in a statement that the risk of gas shortages at low temperatures remains and is likely to continue through the winter of 2026/2027 if no further infrastructure measures are put in place.

The organization expects a structural decline in gas consumption to occur no earlier than 2026/2027, he added.

Germany should consider not only additional LNG terminals, but also additional gas storage capacity or pipeline connections to improve its security of supply, Bleschke said, adding that LNG terminals will definitely be needed in Germany during the upcoming winter and the following winter.

Earlier this week, E.ON, one of Germany's largest utilities, warned that despite an apparently calm energy market and a sharp drop in wholesale gas prices, Europe could still face a price spike this winter if a sudden shortage of supply is accompanied by below-normal temperatures.

We have to be clear that the crisis is not over as structural changes due to geopolitical conflicts and reduced gas supplies to Europe will continue, the company's Chief Executive Officer Birnbaum said in an interview with Bloomberg Television.

E.ON Group is more optimistic about this year and the upcoming winter season than last year, reporting a 40% increase in adjusted core earnings in the first half of 2023 compared to the first half of 2022, which was "negatively impacted by the environment in the energy sector".

Emphasizing the importance of advancing the energy transition, he said, "After a long period of crisis, we feel that the headwinds facing our business are diminishing. We are seeing a growing recovery in our markets".