MANAGING RUSSIAN GAS SUPPLY AND RATIONING POWER

European countries are putting plans in place to manage gas supply and even ration power in case Russian gas flows stop completely or a planned outage at the Nord Stream 1 pipeline is extended.

The European Union has rules to prevent and respond to a disruption in gas supplies. It sets out three levels of crisis: an early warning, alert and emergency.

Early warning level: where there is concrete, serious and reliable information that an event which is likely to result in significant deterioration of the gas supply situation may occur and is likely to lead to the alert or the emergency level being triggered.

Alert level: where a disruption of gas supply or exceptionally high gas demand which results in significant deterioration of the gas supply situation occurs, but the market is still able to manage that disruption or demand without the need to resort to non-market-based measures.

Emergency level: where there is exceptionally high gas demand, significant disruption of gas supply or other significant deterioration of the gas supply situation and all relevant market-based measures have been implemented but the gas supply is insufficient to meet the remaining gas demand so that non-market-based measures have to be additionally introduced with a view, in particular, to safeguarding gas supplies to protected customers

AUSTRIA

Austria, which gets around 80% of its gas from Russia, has activated the first step of a three-stage emergency plan. It will order industry and utilities to make plants run on alternatives to natural gas where possible.

BULGARIA

The country, which meets over 90% of its gas needs from Russia, has agreed to purchase U.S. liquefied natural gas (LNG) and has stepped up talks with Azerbaijan to increase gas deliveries.

CZECH REPUBLIC

The government has backed a bill that would allow the ministry to put in place measures to prevent an emergency in the heating sector and could allow coal-fired plants that are set to be shut down next year due to breaching emission limits to continue to operate.

DENMARK

Denmark’s energy agency said it has activated the first step of a three-stage emergency gas supply plan. It said gas supplies were guaranteed for now but urged consumers and companies to reduce consumption.

FINLAND

Finland and the Baltic states will postpone summer maintenance on a major gas pipeline to help secure supplies.

FRANCE

France is working on contingency plans for cuts to Russian gas flows as top bosses at energy companies urge individuals and businesses to reduce power use. France is less reliant than some of its neighbours on gas imports from Russia, which account for about 17% of its gas consumption.

GERMANY
Germany, which relies on Russia for 55% of its gas needs, has entered Phase 2 of its three-stage emergency gas plan.

The Phase 2 “alarm stage” kicks in when the government sees a high risk of long-term supply shortages of gas. Under the plan, Germany will provide a credit line of 15 billion euros ($15.8 billion) to fill gas storage facilities. A gas auction model will be launched this summer to encourage industrial gas consumers to save gas.

GREECE

Under a contingency plan, Greece, which uses gas mainly for power generation, would get additional quantities of LNG and switch four gas-fired plants to diesel. It will also ramp up coal mining in the next two years as a temporary measure.

A long-delayed gas pipeline between Greece and Bulgaria has been completed and can start commercial operations.

ITALY

Italy which gets around 40% of its gas needs from Russia, announced initial measures to boost gas storage and plans to maximise the use of coal-fired power plants if needed to save gas.

NETHERLANDS

The Netherlands will activate the early warning phase of its energy crisis plan and lift a cap on production by coal-fired power plants. It imports 15% of its gas from Russia. The Groningen gas field could also be used to help supply neighbouring countries but increasing production could risk earthquakes.

POLAND

Poland doesn’t plan to initiate its 12-step emergency procedure that leads to gas rationing. Poland’s current gas balancing position is supported by an LNG terminal running at full capacity and lower summer demand, partly in response to high prices.

SPAIN AND PORTUGAL

Neither country on the Iberian peninsula counts Russia among its main providers.

SWEDEN

Sweden has also activated the first stage of the three-part emergency plan.