Germany on course to avoid gas rationing

GERMANY is likely to avoid gas rationing this winter because of warmer weather, analysts have predicted, in the latest sign that Russia’s grip on European energy markets is weakening.

Analysts at Deutsche Bank say a gas supply shortage has become “far less likely” over the past couple of weeks, with gas consumption in Germany down by as much as 30pc in October and November, meaning storage stocks are not yet being run down.

They believe Germany could now get to late winter with storage stocks still 40pc full, which it said would imply no rationing. A relatively warm October and November have cut household demand, while imports have increased.

“The mild weather has postponed the start of the heating season by several weeks,” they said in a note yesterday.

“Our calculations show that this has increased the likelihood of Germany getting through this winter without rationing and providing it with a more benign starting point for next winter.

However, they warn a late winter cold spell or damage to gas pipes could still trigger problems, while the risk of shortages next winter is higher given the year will start with lower Russian supplies.

Germany along with the rest of Europe has been frantically trying to secure new gas supplies after Russia cut Europe off following its war on Ukraine.

Households across Europe have been encouraged to preserve energy so stocks can be filled, while there have been warnings of blackouts if gas-fired power stations cannot get enough gas.

Deutsche Bank said storage stocks in Germany are “almost completely” full, with more gas imported from the Netherlands, Belgium and Norway. European gas prices are now at about a third of their level in August, albeit still high.

Europe’s gas storage has a knock-on effect on Britain, which relies on imports particularly during the winter.