With 4.06 billion euros…a subsidy to Germany to support natural gas stations

The European Commission gave the green light to provide Germany with a subsidy worth 4.06 billion euros ($4.2 billion) to operate four floating liquefied supply terminals.
The so-called storage and regasification units were leased in 2022 and are currently operated by the state-owned Deutsche Energy Terminal on the German coast overlooking the North Sea.

LNG stations in Germany

European Commission Vice President Teresa Ribera said that the approved government aid “contributes significantly to ensuring the continuity of gas supplies to Germany and neighboring countries after stopping gas imports from Russian pipelines.”
She added that the grant will contribute to reducing dependence on Russian fossil fuels and help diversify energy supplies.

Natural gas

The Commission stated that the four floating stations are a temporary solution until the construction of liquefied natural gas stations on land is completed.
The support will cover the losses incurred, as the stations were rented at the height of the energy crisis, which the bloc suffered when Russia significantly reduced its fuel exports to the European Union in response to its support for Ukraine.

Increasing pressures

Europe is facing increasing pressure in managing natural gas stocks as the winter season enters, according to recent data indicating that stock levels are declining faster than expected, according to the global “Energy Reports” website.
The European Energy Agency stated that gas stock levels reached about 72% of their total capacity in December 2024, compared to 85% in the same period last year.
She explained that this decline is due to an increase in domestic consumption as a result of lower temperatures, in addition to an increase in demand from the industrial sector after it recovered from the repercussions of the economic recession.

Gas prices in Europe

A few days ago, European natural gas prices recorded their largest weekly decline this year.
Mild weather eased concerns about supply risks, while benchmark futures fell as much as 4.2% on Friday.

It reached its lowest level in five weeks, and has fallen by about 14% so far this month, according to what Bloomberg News reported.
Temperatures are expected to rise more than usual in northwestern Europe until the end of the month.