Germany got rid of dependence on Russian gas and replaced it with Norwegian gas

Prior to the Russian invasion, Gazprom provided about 60% of Germany's gas consumption, but since then the country has learned to do without Russian gas. Currently, 60% of consumption is provided by Norway.

Source. This was reported by Reuters.

Norway, the largest gas producer in Europe, became Germany's main supplier immediately after Gazprom's withdrawal.

Since then, the parties have concluded several more agreements, and this week the German state-owned energy company Sefe and Norway's Equinor announced a €50 billion contract that will cover about a third of Germany's industrial gas demand.

As a result, Norway's share will reach 60%, Reuters notes. The common political views of Germany and Norway reduce the likelihood of disruptions, but do not guarantee technical problems, given the large-scale network of pipelines connecting Norway with the continent, said Henning Gloystein, an analyst at Eurasia Group. However, due to the extensive supply network, gas can be supplied via another branch if necessary.

LNG supplies have become an additional source of imports. Germany, in particular, has signed long-term contracts with the American ConocoPhillips and Venture Global. In addition, it has reduced consumption, although its industry still depends on electricity supplies from gas plants. As a result, average monthly gas imports are down 25% this year compared to last year.

In the future, Germany plans to reduce its consumption even further as part of its green transition. The agreement between Sefe and Equinor provides for the replacement of gas with hydrogen supplies starting in 2029.

Meanwhile, the price of gas in Europe (Dutch TTF futures) is currently around 34 euros/MWh, which is 10 times lower than in August 2022, when it exceeded 340 euros (or about 3,600 euros per 1,000 cubic meters).

Background. As reported, Germany has signed a record gas contract for 129 billion cubic meters with Norway's Equinor. The buyer is a German nationalized subsidiary of Gazprom, now called SEFE.