Germany, The Largest Importer for Russian Gas
Posted: 09/09/2014 03:09:44 Edited: 09/09/2014 03:09:44 Clicks: 871
Germany has difficulties on energy. The usage of renewable energy in Germany is in the lead in the world. In the past ten years, the proportion of German renewable energy consumption had been increased from 6% to 25 impressively. But Germany is also a larger coal consumer which is contrary to leading position of renewable energy.
However, what is more surprised, Germany is the largest importer for Russian gas in fact. According the newest annual report of BP, the total imported volume of gas from Russia to Germany was as much as nearly 40 billion cubic meters in 2013, which was much higher than Ukraine. Ukraine imported only 25 billion cubic meters.
More than 70% of German energy demands need to be imported while gas, oil and coal imported from Russia account for only quarter of demands. The data of IEA show that Russian gas supply to Germany accounts for about 38%, oil accounting for 35% and coal accounting for about 25%. This type of dependence result in Germany being influenced easily when Russian gas cross-border supply is cut off easily. Without surprising, Angela Merkel, the German Prime Minister is particularly cautious when she dealing with Putin. Because she is very clear that Russia prevails. Once Russian energy supply is cut off for any reasons, Germany has only three options while neither of them are the best solutions.
The first option is that import more gas from Norway and Netherland. Norway, Netherland and Russia are the largest gas suppliers for Germany. It may be the current best option because gas can be supplied from Norway and Netherland to Germany throng the pipes which have low risks. But for long-term, gas from Norway and Netherland is unable to take place of Russian gas. Because of the gas is produced in the North Sea which is considered as acyclic reduction.
The second one which is also discussed the most widely is that import LNG from Qatar and the U.S. who are the main LNG manufacturer. But, some significant obstacles may exist. Firstly, LNG import in the U.S. will not form scale in the next few years. Even the first program that the factory of Cheniere Energy which is located in Sabine Pass, Louisiana goes into operation, LNG will be exported to those countries which have signed long-term binding contracts.
Even Germany can sign a long-term contract with another LNG supplier. Germany does not have necessary infrastructures such as discharging quays and gasification plants to process large amount of imported LNG. In the future, it is difficult for Germany finding a supplier who can provide sufficient quantity within short time, especially global LNG demands increasing at a high speed.
The third one which is also the most controversial is that use hydrofracture or fracturing drilling to exploit gas in Germany, changing gas production completely. The Federal Institute of Geological Sciences and Natural Resources predicts that Germany has as much as 2.3 trillion cubic meters which can meet the demands for one century.
However, the largest obstacle is how to collect the sufficient reserves. Actually, last month, Barbara Hensricks, the Minister of Environment Department proposed that Germany would ban most of hydrofracture by 2021. The proposal will be strike for reducing dependence on Russian energy.
However, what is more surprised, Germany is the largest importer for Russian gas in fact. According the newest annual report of BP, the total imported volume of gas from Russia to Germany was as much as nearly 40 billion cubic meters in 2013, which was much higher than Ukraine. Ukraine imported only 25 billion cubic meters.
More than 70% of German energy demands need to be imported while gas, oil and coal imported from Russia account for only quarter of demands. The data of IEA show that Russian gas supply to Germany accounts for about 38%, oil accounting for 35% and coal accounting for about 25%. This type of dependence result in Germany being influenced easily when Russian gas cross-border supply is cut off easily. Without surprising, Angela Merkel, the German Prime Minister is particularly cautious when she dealing with Putin. Because she is very clear that Russia prevails. Once Russian energy supply is cut off for any reasons, Germany has only three options while neither of them are the best solutions.
The first option is that import more gas from Norway and Netherland. Norway, Netherland and Russia are the largest gas suppliers for Germany. It may be the current best option because gas can be supplied from Norway and Netherland to Germany throng the pipes which have low risks. But for long-term, gas from Norway and Netherland is unable to take place of Russian gas. Because of the gas is produced in the North Sea which is considered as acyclic reduction.
The second one which is also discussed the most widely is that import LNG from Qatar and the U.S. who are the main LNG manufacturer. But, some significant obstacles may exist. Firstly, LNG import in the U.S. will not form scale in the next few years. Even the first program that the factory of Cheniere Energy which is located in Sabine Pass, Louisiana goes into operation, LNG will be exported to those countries which have signed long-term binding contracts.
Even Germany can sign a long-term contract with another LNG supplier. Germany does not have necessary infrastructures such as discharging quays and gasification plants to process large amount of imported LNG. In the future, it is difficult for Germany finding a supplier who can provide sufficient quantity within short time, especially global LNG demands increasing at a high speed.
The third one which is also the most controversial is that use hydrofracture or fracturing drilling to exploit gas in Germany, changing gas production completely. The Federal Institute of Geological Sciences and Natural Resources predicts that Germany has as much as 2.3 trillion cubic meters which can meet the demands for one century.
However, the largest obstacle is how to collect the sufficient reserves. Actually, last month, Barbara Hensricks, the Minister of Environment Department proposed that Germany would ban most of hydrofracture by 2021. The proposal will be strike for reducing dependence on Russian energy.
