Germany may be getting cold feet about ending its oil reserve waiver. Berlin said this week it is considering extending a temporary reduction in national oil stockpiling requirements beyond the current August 31 deadline, even as markets celebrate the U.S.-Iran agreement and the expected reopening of the Strait of Hormuz. Officially, Germany insists there are […]
Germany’s uneasy energy truce with Washington is starting to fray, and the pressure point is a single refinery that keeps Berlin moving.
German Chancellor Friedrich Merz said he’s optimistic that the US will exempt Rosneft PJSC’s German unit from Washington’s latest sanctions against Russia.
The LNG will be sourced from the company’s Das Island liquefaction facility, with the total deal valued at approximately USD 400 million. The site has exported over 3,500 LNG cargoes globally since 1977 and produces up to 6 million tonnes per year.
Germany has given the green light for drilling as much as 13 billion cubic meters (Bbcm) of natural gas at a protected marine site in the North Sea in a controversial step to bolster energy security.
Entso-e, the association of EU transmission system operators, released a report on Monday evaluating bidding zone configurations with the purpose of establishing “optimal bidding zone configurations in Europe to maximize economic efficiency and cross-zonal trading opportunities, while maintaining security of supply.”
Domestic power prices have been very volatile in recent months amid low wind speeds. Germany has been experiencing lower-than-normal winds for four months, which have reduced wind power generation, boosting electricity prices and the reliance on fossil fuels. Electricity prices have been rising this year due to higher natural gas prices in Europe amid a cold winter, lower wind generation, and faster depletion of natural gas inventories.
The German economy ministry spokesperson said the government is not a party to the contract and isn’t involved in negotiations. Rosneft Deutschland declined to comment, and the Qatari wealth fund also declined to comment.
Germany, which in 2023 closed all its remaining nuclear power plants – is now seeking to balance the generation and transmission systems with new gas power plants. But deadlines and timelines are being missed, and a new government is expected after the snap elections in late February.
Germany’s natural gas demand rose by 3.3% in 2024, due to lower prices compared to last year, preliminary estimates by the association of the German utilities, BDEW, showed on Wednesday.