Overview

Germany’s strategic position at the heart of Europe makes it a major transit country for the Netherlands, Switzerland, France, Poland, the Czech Republic, Austria and Belgium. The German gas market is the fifth-largest in the world and the second-largest in the EU. With imports of around 96 billion cubic metres per year, Germany accounts for 17% of the EU’s consumption.

Germany has little domestic gas production and relies heavily on imports via cross-border pipelines. The country has no LNG infrastructure, although some German companies have booked capacity in other countries’ terminals, according to the International Energy Agency (IEA).

The majority of Germany’s imports come from Russia via the Nord Stream pipeline, completed in 2011, in addition to Norway via the Norpipe and Europipe systems, and the Netherlands via four main pipelines.

Germany imported 23 billion cubic metres from the Netherlands in 2012, while Norway supplied 22 bcm and Russia 31 bcm.

Nord Stream links Vyborg in Russia to Greifswald in Germany. Its two parallel pipelines can transport up to 55 bcm/y. Gazprom holds a 51% share in Nord Stream, while Wintershall and E.On hold 15.5% each, and Gasunie and GDF Suez hold 9 % each.

The IEA predicts an increase in gas-fired power generation in Germany to provide baseload generation capacity following the decision to phase out nuclear power, and to provide back-up for renewables. However, the low price of carbon, coupled with increased consumption and imports of relatively cheap coal, have made investment in combined-cycle gas turbines unprofitable.

Page updated: 24/07/2014