VNG warns of risks to gas contracts due to EU methane regulations - Germany's gas storage hits 20.7% as EU methane rules threaten supply deals
Germany's gas supplies have stabilised since the energy crisis of 2022, but challenges remain. Storage levels currently sit at just 20.7%, raising concerns ahead of next winter. Meanwhile, stricter EU methane rules could disrupt long-term import deals with key suppliers outside the bloc.
Norway remains Germany's main pipeline gas supplier, with additional LNG arriving from the US. Companies like VNG are also pursuing deals with Qatar, Saudi Arabia, and the UAE to secure future supplies. Since 2024, VNG has been the only German importer receiving pipeline gas directly from Algeria.
New EU regulations, set to take effect in 2027, will require non-EU producers to verify compliance with European methane emission standards. These rules cover imports of oil, gas, and coal. VNG CEO Ulf Heitmüller has warned that unclear compliance requirements could threaten supply reliability, particularly for long-term contracts.
Heitmüller described the verification process as impractical and poorly defined. He also stressed that filling storage before next winter would be a major challenge, given the current low levels. Without reliable, long-term agreements, Germany's energy security could face further pressure.
The EU's methane rules aim to reduce emissions but risk complicating gas imports from non-EU suppliers. With storage at 20.7% and winter approaching, Germany must balance regulatory demands with the need for secure energy supplies. VNG has highlighted the potential strain on contracts if compliance remains unclear.
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