ZEW: Natural gas rationing will hit the metal and chemical industries significantly

Germany’s rationed gas supply will affect metal production and processing, the chemical and bakery industries, amid increased uncertainty over supply from Russia via Nord Stream 1.

The tight supply of natural gas could also affect less energy-intensive but economically important sectors due to a lack of upstream products, said economic institute ZEW, which conducted the analysis on behalf of the Foundation for Family Businesses in Germany.

The textile and ceramics industries are also highly dependent on gas.

“If there are no supplies, even industries with high added value will quickly find themselves in a difficult position,” said the head of the foundation, Kirchdorfer.

He called on Germany to maintain its status as a place for industries, adding that “with creeping deindustrialisation, we would simply replace dependence on natural gas with a new dependence on other imported products”.

The figures, published by the Federal Statistical Office, highlight Germany’s reliance on natural gas, which was an important source of energy for industry in 2020, when it accounted for 32.1% of consumption.

It is characteristic that in 2021, 95% of natural gas in Germany was imported.

Source: Capital

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