Germany’s Gas Dependence Moves from Russia to Norway: Reuters

Germany’s decision to make Norway its largest gas supplier means it has replaced its dependence on Russian supply with that of its Scandinavian neighbour, according to Reuters.

• While this risk of deliberate supply curtailment far lower, Germany is now exposed to supply disruption via technical issues.
• SEFE recently announced a new supply deal with Equinor, which would cement Norway’s position as Germany’s main supplier, providing around 60% of natural gas.
• Some analysts told Reuters that even politically stable countries carry a risk – with heavy maintenance and production outages being one of them. Thus, Germany should learn from the experience of 2022 and diversify its supply.
• Germany has favoured pipeline natural gas over LNG because the long-term contracts make it cheaper, while LNG is subject to global market volatility and shipping issues, Reuters said.