BERLIN, Feb 22 (Reuters) - Germany is unlikely to face a
gas shortage in the coming winter and should halt the conversion
of floating liquefied natural gas (LNG) terminals to fixed ones,
the DIW economic institute said in a study seen by Reuters on
Wednesday.
In the most likely scenario, Germany would have sufficient
supply of around 87 billion cubic metres (bcm) this year if
demand remains 12% below the 2018 to 2021 average, the study
said.
The total supply could even rise to 94 bcm, around the same
level as in previous years, if Germany's import capacities for
liquefied natural gas (LNG) were utilised to 95%.
With the LNG terminals in Belgium and the Netherlands, as
well as floating facilities in Germany, there is sufficient
import capacity for LNG to be able to meet rising demand in
Germany. "In particular, this can be achieved through a higher
willingness to pay than in other world regions," DIW said.
However, because of the improved gas supply situation, the
institute advocates stopping the conversion of floating LNG
terminals to fixed ones, saying the gas industry took the
opportunity that arose during the uncertainties in spring 2022
to build projects far beyond the foreseeable sensible volume.
Germany is phasing out the use of fossil natural gas in the
medium term, said the institute, meaning the burning of natural
gas must be ended as part of the path to climate neutrality.
(Reporting by Rene Wagner
Writing by Miranda Murray
Editing by Rachel More)
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