German gas supply diversification ensures imports, but at a price, Equinor says

By Nora Buli OSLO, Sept 8 (Reuters) - Germany, with gas storage levels at historic lows, will secure its winter gas supply but faces high prices, according to a senior Equinor executive. Germany’s diversification of import sources since the 2022 energy crisis—when it lost Russian gas pipeline supplies—has been crucial. Equinor’s head of marketing, midstream and processing, Irene Rummelhoff, highlighted this at a conference in Oslo.

"Even though your storages are quite empty, you will be in a position to attract enough and import enough," she told German-Norwegian energy executives and officials. Since 2022, Norway has become Germany’s largest gas supplier, primarily via pipeline, while Germany has also expanded LNG import terminals. However, gas storage sites in Germany are only 53% full—lowest in 15 years—and the country risks shortages if winter is very cold, according to the storage industry group INES.

Rummelhoff also warned about rising prices. Europe’s benchmark gas contract for front-month deliveries at the Dutch TTF is trading at its highest level since January 2023. Recent price surges stem from geopolitical tensions, such as the U.S.-Iran conflict, which disrupts Qatari LNG exports via the Strait of Hormuz, increasing competition for alternative LNG supplies between Asia and Europe.

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