If Germany could find a way to cut its supply of gas from Russia immediately “it would do so”, said David Gill, Germany’s consul general in New York, at the BloombergNEF Summit on April 19.
Russia is the pivotal source of Germany’s gas, accounting for around two-thirds of supply. This means any interruption to flows would have significant consequences. Recent analysis by German think tanks warned that the financial impact on Germany of an immediate interruption to Russian gas supplies could be as much as 220 billion euros ($238 billion) over the next two years, the equivalent of a 6.5% annual output cut.
Gill highlighted how Germany is pursuing a range of measures to reduce reliance on Russian gas supplies, including efforts to increase energy efficiency, greater cooperation with U.S. suppliers, and investments in new liquefied natural gas import infrastructure.
When asked what assurances Germany could give producers around its commitment to LNG in the context of its net-zero commitments, Gill reiterated that Germany needed gas “for the time being” and that it was committed to building the necessary infrastructure. Looking further ahead, Gill emphasized the need for any LNG infrastructure investments to be future-proofed, with a particular need for what he called “hydrogen compatibility”.