Sunday, September 04, 2022

Deindustrialization 2, Germany, June-July 2022 reports

The crawling Germany deindustrialization, degrowth economics. See these reports in June-July 2022.

1. Germany sets out ways to cut gas usage amid Russia supply crunch
Vera Eckert and Ludwig Burger. June 22, 2022. 12:28 AM GMT+8
https://www.reuters.com/markets/commodities/germany-maps-out-ways-cut-gas-usage-amid-russia-supply-crunch-2022-06-21/

2. "Social Peace Is In Great Danger": Germany Is Quietly Shutting Down As Energy Crunch Paralyzes Economy
TYLER DURDEN, JUL 09, 2022
https://www.zerohedge.com/markets/social-peace-great-danger-germany-quietly-shutting-down-energy-crunch-paralyzes-economy

3. German firm calls for energy price cap to avoid social unrest
Holger Hansen  July 14, 2022  6:03 AM GMT+8
https://www.reuters.com/business/energy/german-firm-calls-energy-price-cap-avoid-social-unrest-2022-07-13/

Household energy costs could triple in Germany as Russian gas supplies dwindle, officials in the sector said, and one company representative raised the possibility of social unrest unless there was a cap on prices.

4. Electrical Engineering Professor: “Germany Urgently Needs An Energy Strategy Change”
P Gosselin on 13. July 2022
https://notrickszone.com/2022/07/13/electrical-engineering-professor-germany-urgently-needs-an-energy-strategy-change/

5. German Energy Giant Warns Of Insolvency "Within Days", Starts Draining Gas From Storage
TYLER DURDEN, JUL 16, 2022
https://www.zerohedge.com/markets/german-energy-giant-starts-draining-gas-storage-it-warns-insolvency-within-days

6. Germany’s Running Out Of Energy: Wind Turbine Construction Stalls, Firewood Becoming Scarce!
By P Gosselin on 16. July 2022
https://notrickszone.com/2022/07/16/germanys-running-out-of-energy-wind-turbine-construction-stalls-firewood-becoming-scarce/

According to firewood dealer Konrad Kötterl. “Some people are panicking about not being able to get any more wood.” As a result, they’re stockpiling. Normally, he has three to four orders a day in the summer. “Right now, it’s 20 to 30.”

7. Top Energy Regulator Warns Germany Won't Survive Winter Without Russian NatGas
Tyler Durden MONDAY, JUL 18, 2022 - 01:00 AM
https://www.zerohedge.com/commodities/top-energy-regulator-warns-germany-wont-survive-winter-without-russian-natgas

8. Germany Now ‘Hostage’ To Putin After US Poured Billions Into Defending It From Russia
MICAELA BURROW July 24, 2022
https://dailycaller.com/2022/07/24/german-leaders-apathy-cave-russia/

9. German landlord LEG calls for limiting heating supply, Handelsblatt reports
July 25, 2022
https://www.reuters.com/business/energy/german-landlord-leg-calls-limiting-heating-supply-report-2022-07-25/

10. BASF readies more ammonia production cuts in gas supply crunch
By Ludwig Burger July 27, 2022. 3:27 PM GMT+8
https://www.reuters.com/business/energy/basf-considers-more-ammonia-production-cuts-gas-supply-crunch-sources-2022-07-27/

Germany's BASF (BASFn.DE), the world's largest chemical company, is cutting ammonia production further due to soaring natural gas prices, it said on Wednesday, with potential ramifications from farming to fizzy drinks.

Germany's biggest ammonia maker SKW Piesteritz and number four Ineos also said they could not rule out production cuts as the country grapples with disruption to Russian gas supplies.

Ammonia plays a key role in the manufacturing of fertiliser, engineering plastics and diesel exhaust fluid. Its production also yields high-purity carbon dioxide (CO2) as a byproduct, which is needed by the meat and fizzy drinks industries....

"We are reducing production at facilities that require large volumes of natural gas, such as ammonia plants," BASF Chief Executive Martin Brudermuller said in a conference call after an earnings report.... 

Chemical companies are the biggest industrial natural-gas users in Germany and ammonia is the single most gas-intensive product within that industry....

Most ammonia goes into nitrogen fertilisers but other uses include diesel exhaust fluid AdBlue and engineering plastics....

11. German firms weigh options to save gas, warn may need to cut output
Victoria Waldersee and Riham Alkousaa July 26, 2022
https://www.reuters.com/business/energy/german-firms-weigh-options-save-gas-warn-may-need-cut-output-2022-07-26/

In its push to curb its reliance on Russian gas after Moscow's invasion of Ukraine, Germany has already cut the share of gas in its electricity production to around 6% this year from 15.2% last year and has permitted reconnecting coal-fired power plants to the grid. read more

Germany's gas-guzzling chemicals industry could lower gas consumption by 2% to 3% by fuel switching, national chemical industry association VCI told Reuters.

12. German Experts Warn Of Grid Instability…”Conventional Power Plants Needed For A Long Time To Come”
P Gosselin on 27. August 2022
https://notrickszone.com/2022/08/27/german-experts-warn-of-grid-instability-conventional-power-plants-needed-for-a-long-time-to-come/

13. BASF Prepares To Slash Ammonia Production In Germany Amid Worsening NatGas Crunch
Tyler Durden JUL 27, 2022
https://www.zerohedge.com/commodities/basf-prepares-slash-ammonia-production-germany-amid-worsening-natgas-crunch

German chemicals company BASF SE paid an extra 800 million euros ($809.5 million) to keep its plants operating in the second quarter compared with a year earlier amid skyrocketing natural gas prices...

14. Germany set to impose gas levy on consumers to support ailing importers
Markus Wacket and Riham Alkousaa. July 28, 2022
https://www.reuters.com/business/energy/germany-set-impose-gas-levy-consumers-support-ailing-importers-2022-07-28/

Germany is set to impose a levy on all gas consumers from Oct. 1 aimed at helping suppliers struggling with soaring gas import prices...

Households and industrial consumers with long-term contracts will be hit by the charge, which will be valid until the end of September 2024, the document showed. Gas importers will have to bear rising costs by themselves until the levy kicks in...

German Economy Minister Robert Habeck said the levy would amount to between 1.5 euro cents and 5 euro cents per kilowatt hour (Kwh), with the proceeds available to all companies that need to replace Russian gas.

This means that a four-person household could face additional costs of up to 1,000 euros ($1,014) per year.

15. Gas Levy Could Triple Household Heating Bills In Germany
By Charles Kennedy - Jul 28, 2022, 2:30 PM CDT
https://oilprice.com/Latest-Energy-News/World-News/Gas-Levy-Could-Triple-Household-Heating-Bills-In-Germany.html

16. German cities impose cold showers and turn off lights amid Russian gas crisis
Most of the lights on Berlin Cathedral are switched off on Wednesday night to save energy costs
28 Jul 2022 18.00 BST
https://www.theguardian.com/world/2022/jul/28/german-cities-impose-cold-showers-and-turn-off-fountains-in-face-of-russian-gas-crisis

https://www.zerohedge.com/commodities/german-cities-turn-hot-water-and-cut-lighting-government-buildings

17. German cities impose cold showers and turn off lights amid Russian gas crisis
Philip Oltermann in Berlin  28 Jul 2022
https://www.theguardian.com/world/2022/jul/28/german-cities-impose-cold-showers-and-turn-off-fountains-in-face-of-russian-gas-crisis 

See also: Deindustrialization 1, Europe's sagging energy supply, July 26, 2022

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