Free German flag waving in sky image, public domain CC0 photo.

Low water levels on the Rhine and oil supplies in eastern Germany could affect Germany’s coal supply in the fall and winter, a Reuters document indicated.

Europe’s largest economy wants less Russian energy. Low Rhine river water levels have affected logistics and added to Germany’s energy dilemma as industry converts to more coal and oil due to a drop in Russian energy supplies.

Due to limited domestic shipping, accumulating coal reserves could fall swiftly, an Economy Ministry document indicated.

“Additional storage sites which have been and are being procured in southern Germany will probably not be filled by winter,” the report stated, referring to Baden-Wuerttemberg, home to EnBW (EBKG.DE).

Low Rhine water levels have hindered coal barge transit.

Overburdened rails give little relief, the article said.

Germany’s Cabinet passed legislation Wednesday to prioritize energy transport on rail networks.

Gazprom (GAZ.MM) cut gas shipments to Germany via Nord Stream 1 to 20% of capacity, citing technical concerns. more… Berlin labeled the decision politically motivated, given Europe’s sanctions on Russia over Ukraine.

The document stated northeastern oil supply could be a concern.

Due to an EU oil embargo, Schwedt and Leuna refineries will stop using Russian pipeline oil by the end of the year, leading to increased pricing.

The memo indicated that Leuna and Schwedt could operate at 75% capacity.

Schwedt supplies eastern Germany, including Berlin Airport. Rail congestion could impede efforts to supply this area with western refinery goods, the study added.

“High demand and limited rail freight capacity complicate oil logistics. Refineries can’t transfer some products “report.

Source: AP News

LEAVE A REPLY

Please enter your comment!
Please enter your name here