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Washington's sabotage of the Nord Stream pipeline makes the Trans-Saharan gas pipeline crucial for Europe which now faces uncertainty. EU concern over Niger's leadership now becomes evident. (pbs.twimg.com)

submitted 1 year ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 1 year ago (1 children)

So you think that the biggest thread energy wise is the votality of lng? I believe that this is a problem, and if it's true it may lead to another crisis in winter.

But right now the storage is nearly full, so if the winter is weak there will probably no shortage of gas and no problem in winter.

I thought that you had a different reason that will more likely (say >70%) cause more chaos in winter.

[–] [email protected] 2 points 1 year ago

There are several issues here. First, LNG prices are volatile which makes it problematic for the use in the industry. If you're doing manufacturing, you can't have your input costs fluctuating all the time. Second, LNG capacity is much lower than pipeline capacity even when accounting for storage. So, overall available energy is lower. Third, there aren't a lot of LNG terminals available at the moment, so it's not possible to process LNG quickly if demand rises.

All of these problems make it difficult for industry to operate in Germany, and hence why we're seeing it moving out of Germany right now. As the industry leaves that means jobs are going to be disappearing leading to higher unemployment, and economic activity will slow down because people are going to be saving money. This is the real concern for Europe and Germany in particular.