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German gas storage over 90% full despite Russian supply cuts


German gas storage over 90% full despite Russian supply cuts

BERLIN — Authorities said that despite Russia shutting off exports through a key pipeline, Germany's natural gas storage tanks are currently more than 90% filled in preparation for the winter heating season and are continuing to fill up.

Late on Monday, Klaus Mueller, the chairman of the national network regulator, tweeted that gas storage had "achieved another milestone" and will assist manage any possible gas emergency as well as flow back into the market.

However, he emphasized that "we must continue to preserve gas." The fuel produces energy, runs factories, and heats houses.

Following Russia's state-owned Gazprom's start of lowering supplies through the Nord Stream 1 pipeline, which has led to skyrocketing gas prices, the government increased storage restrictions in July.

Germany increased the objectives for October and November from 80% and 90% to 85% and 95%, respectively, and established a requirement that storage is 75% full by September 1st. The gas consumption in Germany in January and February of this year, when temperatures were comparatively moderate, was nearly equivalent to the November target.

As tensions over the conflict in Ukraine rise, Russia hasn't supplied any gas through Nord Stream 1 since the end of August. In mid-June, the nation began decreasing gas supply through the pipeline, citing supposed technical issues.

Russia supplied somewhat more than one-third of Germany's gas needs prior to the decrease.

Due to the cutoffs, the government was compelled to put up a rescue plan for Uniper, a significant gas importer, which was forced to purchase gas at much higher market rates in order to satisfy its supply commitments. As its losses grow, the corporation said last week that it is looking into the idea of the government purchasing a controlling interest.

The outcome of those discussions and the future of a new natural gas tax introduced by the government with the initial bailout in order to assist energy importers are both uncertain.

Olaf Scholz, the chancellor, claims that Germany is prepared to survive the winter with ample energy, citing among other things new liquefied natural gas facilities anticipated to begin operations soon.

It's not difficult to detect greater prices when inflation increases. A dollar doesn't buy as much these days, but you don't have to be very old to recognize that. In 1979, the Happy Meal was released and cost $1.10. That same lunch costs $2.99 now. It is still one of the most well-liked menu dishes in the network of restaurants. Due to parents' convenience, it also serves as a gauge for the economy.

And take into account the iPhone, which will cost 81% more in 2022 than it did in 2007. Consumers are prepared to make any necessary payments despite the price hike.

Pricing power is the key to both of these cases as well as similar ones. A business that has the option to increase prices can keep its profit margins. This implies that regardless of what is happening in the overall economy, it consistently produces outcomes. This may be taken for granted in prosperous times. But that constancy shines out as the economy weakens.


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