Germany imported 80 billion euros worth of fossil fuels and electricity in 2022, just over two percent of its GDP. Before Russia invaded Ukraine, Germany imported one-third of its oil, half of its coal, and more than half of its natural gas from Russia. Germany is working on a plan to end this dependency as soon as possible What Germany has done German Finance Minister Robert Habek has said that imports from Russia have started to decrease after the Russian invasion of Ukraine. He said Germany’s dependence on Russian oil would be reduced by 25 percent and its dependence on coal by 50 to 25 percent in the next few weeks. At the same time, he said Germany was planning to release Russian coal by the end of the winter and end its dependence on Russian oil by the end of this year. The only issue is gas, about which Habek said that Germany might have to buy gas from Russia by 2024. Why Germany is stuck in a gas case, 36 percent of the gas that comes to Germany is used in industry. 31% of gas is used at home and 13% is spent on business. The problem with gas is that it is shipped and imported through the pipeline. Now trade between Russia and Germany has been going on for a long time, so has the infrastructure of the pipeline. Now if Germany wants to buy gas immediately from a country other than Russia, it will need infrastructure. The gas supply system cannot be set up overnight. In this situation, Germany is flexible towards Russia regarding gas. Coal and oil can be imported from anywhere by ship through water. Not so with natural gas. Yes, if natural gas is converted to liquefied natural gas i.e. LNG, then it can also be transported in water by ship.
However, special arrangements have to be made at the port for this. Germany has approved similar construction in two ports, but it will be difficult to use them before 2026. Read more: Germany confused about importing fuel from Russia, which country can Germany go to? In addition to Russia, Germany could buy gas from Norway, Qatar, Algeria and Azerbaijan or increase the amount of gas it is already buying. Spain and Portugal could also be helpful to Germany in this regard. However, increasing the supply of gas to the EU through pipelines from Norway, Algeria and Azerbaijan could result in a five-fold increase in the price of gas purchased from Russia. Clearly, no country would want to take a step that would fuel a recession. Speaking of Qatar, the German finance minister has visited Qatar in the past for this purpose. Later, energy agreements were signed between Qatar and several German companies. Utility Uniper and RWE are working to establish a liquefied natural gas terminal for gas sources at sea. So far as oil is concerned, Germany can meet its demand from countries like Kazakhstan, Norway and the United States. Germany’s dependence on the United States and Australia for coal. In addition, he will have to find new alternatives. In the case of gas, Germany can get help from America, Norway and Qatar. Gas from neighboring countries can also be bought. However, there are fears that this will be insufficient. America’s role in the Russo-Ukraine war is also important. In the past, US President Joe Biden has visited many European countries. He also attended the EU and NATO summits, which brought together all the world’s major leaders.
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According to Reuters, at a conference in Brussels, EU leaders promised that Biden would supply 15 billion cubic meters of LNG (BCM) to Europe this year, in addition to the previous agreement. However, it remains to be seen how much US aid can be of benefit to Europe or Germany. This is doubtful because in 2022 Russia supplied a total of 155 BCM gas to the EU, most of which came through gas pipelines. In the same year, the United States supplied 22 BCM LNG to the EU. Now EU members are divided over the issue of supply cuts from Russia. If Russia is to be banned, the 27 EU members must agree. Experts believe that Germany wants to take natural resources for clean energy, but it will take time and infrastructure to build it. “Germany has two main options: to increase piped gas imports from existing suppliers or to increase LNG consumption. Both have their disadvantages,” said Franca Wolf, a senior analyst at risk adviser Verisk Maplecroft. The Netherlands is the second largest supplier of natural gas, but Norway is at the top of gas production, and the Netherlands is considering reducing production. ” Some analysts believe that once the LNG source infrastructure is ready, it will not be difficult to order. The Russo-Ukrainian war is said to have created a global crisis, but as Germany and European nations set their sights on carbon neutrality, the crisis could give a new impetus to their progress.