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The German government expects problems with coal and oil supplies

Germany’s government is worried about possible problems with coal supplies for power plants in the fall and winter due to low water levels in the Rhine River and oil supplies in eastern parts of the country, according to a document seen by Reuters.

Europe’s largest economy is trying to reduce its dependence on Russian energy. But weeks of critically low water levels in the Rhine River have disrupted the supply chain and added to Germany’s energy headache as industry temporarily uses more coal and oil due to a sharp drop in Russian energy imports.

“Due to greatly reduced domestic shipping, the accumulated coal reserves could decrease rapidly,” said a document titled “Energy Supply Assessment,” compiled by the economy ministry and seen by Reuters.

“Additional warehouses that have been supplied and continue to be supplied in southern Germany will probably not be filled until winter,” the document said.

The document cites the low water level of the Rhine, which has reduced the volume of coal that can be transported by barges.

Significant improvement is not expected, the paper added, and the overburdened rail system offers little relief.

On Wednesday, Germany’s cabinet approved legislation to prioritize power transmission on part of the country’s rail networks.

Russian gas giant Gazprom has cut gas flows to Germany via the Nord Stream 1 pipeline to 20% of capacity, citing technical problems. Berlin described the move as politically motivated, due to Europe’s sanctions against Russia over its invasion of Ukraine.

The document also states that oil supply could be a problem in the northeastern regions.

The Schwedt and Leuna refineries will be deprived of oil from Russian pipelines from the end of the year due to the EU embargo on Russian oil and this will lead to higher prices, the document said.

Both the Leuna and Schwedt refineries could operate at 75% capacity, the document said.

Schwedt supplies large parts of eastern Germany, including Berlin Airport. Efforts to supply this region with supplies from the western regions could also face transport problems due to rail congestion, the document said.

“High demand and limited rail capacity are leading to a difficult situation in the oil supply chain. Some supplies from refineries cannot be moved,” the document said.

Source: Capital

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