Foreign
GERMANY’S third-largest gas importer and storage unit operator on Friday petitioned the Ministry for Economic Affairs and Climate Action for financial assistance, a further sign of the stresses facing the industry amid turmoil in energy markets.
VNG, a subsidiary of Energie Baden-Württemberg (EnBW), made the application on Friday because current conditions were resulting in “significant losses due to extra acquisitions of natural gas,” noted EnBW.
Additionally, aid is needed to keep the business operational.
However, gas has become a rare commodity in recent weeks as Russia has turned off the taps to its pipelines.
Russia says Western sanctions had made it impossible to operate the pipelines, even though European countries have not sanctioned gas and is willing to pay for it.
European countries say the shut-off is retribution for the sanctions, which were put in place to protest Russia’s invasion of Ukraine.
Meanwhile, the situation has caused the price of gas to skyrocket, meaning German firms are paying significantly more than planned to provide promised gas deliveries to businesses and communities, tipping the companies into debt.
According to the firm, VNG is responsible for providing about a fifth of Germany’s gas supply, particularly in the country’s east.
It supplies some 400 municipal and industrial customers.
It added that the company also wants to enter into talks with the government about stabilising government operations.
The ministry on Friday confirmed the receipt of an application for so-called stabilisation measures under the Energy Security Act.
There are various options, a ministry spokesperson said, which instrument will be chosen remains to be seen.
A VNG spokesperson explained the company’s situation, saying “Gas quantities affected by Russian supply failures, some of which have fixed prices, now have to be procured at massively higher prices due to the war.’’
Habeck promised state assistance. “VNG officially said that they need government support, and we will get it done,’’ he asserted.(dpa/NAN)
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Tags: EnBW
