Florian Grünberger Senior Analyst - Macroeconomy and Cross Commodity

Will Germany Have to Cut Nat Gas Consumption Beyond 15%?

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Germany is the EU’s largest consumer of Russian natural gas. The threat of weaponizing Russian supplies as we approach winter persists, and Gazprom’s recent cut to Nord Stream 1 volumes to 20% of capacity from June 27 onwards is a case in point. To put the volumes at stake into perspective, this article provides a quantitative assessment of the pre-war baseline, the current status quo, as well as possible future developments. Our conclusion examines the degree to which measures that are currently being taken by Germany can counter cuts in Russian supply. 

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German Chancellor Olaf Scholz has put on ice the certification of the new Nord Stream 2 pipeline following President Putin’s decision to order troops into the Donbas region of Ukraine on “peacekeeping duties”.