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Interview

Leipzig/Friedrichskoog, 02 December 2022

Wolfgang was interviewed by the Themen!magazin, a reputed German magazine on energy and energy policies. The interview is titled “Entlastungspakete mildern Symptome, kurieren aber keine Ursachen“. In essence, the interview is an ‚in a nutshell’ version of the ‘Gastkommentar’ in the Handelsblatt newspaper.

Publication

Berlin/Friedrichskoog, 19 October 2022

Wolfgang delivered a ‚Gastkommentar‘ (guest commentary) in the Handelsblatt, the leading German business newspaper, titled “Auf heimische Ressourcen setzen” and subtitled “Entlastungspakete mildern nur die Symptome. Deutschland sollte die eigenen Energien nutzen: Strom aus Atom- und Braunkohlekraftwerken sowie Gas durch Fracking.

For perspective, Wolfgang illustrates that, at traded prices in October 2022, the entire German gas demand 2023 would have cost € 209 billion. Hence, the debt financed € 200 billion subsidy would melt like snow in the sun in a very short time while the elevated prices would persist. Read moreThe root cause for the elevated prices for both gas and electricity is a supply shortfall. This would neither be alleviated by the construction of LNG terminals nor by the accelerated expansion of renewables. Rather, the mobilization of indigenous resources in ‘Kriegsmangelwirtschaft’ fashion would calm the traded markets. This should include the extraction of the huge indigenous German gas resources by environmentally friendly fracking, the continuation of nuclear power generation and CO2 neutral power generation with cheap indigenous lignite by applying the so-called CCS (carbon-capture-storage) technology, the latter strongly recommended by the World Climate Council (‘IPCC’).

Interview

Heide/Friedrichskoog, in March 2022

Wolfgang’s resignation from the supervisory board of Gas4Europe was reported in the ‘Dithmarscher Landeszeitung’, a North-German Newspaper residing in Heide, in an article titled “Dithmarscher steigt bei Nord Stream 2 aus”. Wolfgang was quoted as taking this step entirely for moral reasons. For further details please refer to News & Events.

Interview

London/Friedrichskoog, 31.01.2022

Wolfgang was interviewed for and quoted in an article titled ‘Europe’s policies aimed at phasing out long-term supply contracts expose midstream suppliers to global price volatility’ by Katya Zapletnyuk, editor in chief of and energy expert at ICIS Heren, published in ICIS Gas In Focus (GIF 29.02 of 31 January 2022), the leading gas industry report with an established audience of executives, analysts and traders since 1994.

The article has been shared by Katya and can also be accessed at https://www.linkedin.com/posts/katya-zapletnyuk-b15645_icis-gasmarket-gassupply-activity-6894302411536547840-S2zY.

Wolfgang pointed out that, while producers were of course entirely capable to offload their entire production into the liquid traded markets by themselves, it created a significant financial burden to come up with the trade margin collateral and also to bear the entire counterparty default credit risk. In the past, after price revisions had established hub-indexation in long-term contracts, various producers had indeed taken some volumes out of the long-term contracts in order to market them by themselves. However, the bulk was left in the long-term contracts with the midstreamers, for the above reasons, the latter now essentially acting as service providers. It was entirely possible that producers might take an initiative later with a view to retain, albeit hub-indexed, long-term contracts.

Interview

Brussels/Friedrichskoog, 26.01.2022

Wolfgang was interviewed by the Brussels based ARD journalist Michael Grytz for a news report ‘Wie sicher ist die Gasversorgung ohne russisches Gas’. The report was broadcasted by the ARD, one of the major German news channels in ‘Tagesthemen’ on 26 January 2022 at 22:15 hrs.

I.a., Mr. Grytz pointed out that a serious European pipeline gas supply shortfall was stemming from the decision of the Dutch government to reduce – and eventually finish, as soon as 2022 – the once significant supplies from the giant Groningen field. Indeed,   the new German Minister of the Economy, Mr. Harbeck from the Green Party, had visited his Dutch colleague asking to keep the tabs open. Wolfgang pointed out that, while the Media were focusing on Russia shutting down supplies, it appeared, in the face of grim statements of European and American politicians, equally possible that Europe might put an embargo on the import of Russian gas. In both cases, the question was the same, namely whether Europe’s security of gas supply could nonetheless be maintained. Wolfgang pointed to multiple earlier publications and statements that there was meanwhile enough destination-flexible LNG in the global gas market to satisfy European demand. Moreover, there was ample European LNG-regasification capacity to absorb such. However, absent significant pipeline supplies, Europe would directly be competing with Asia for LNG, which could easily drive prices even higher than they already were.

Interview

Berlin/Friedrichskoog, 31.12.2021

Wolfgang was interviewed for and quoted in an article titled ‘Streitfall Nord Stream 2: Was Sie über das Milliardenprojekt wissen sollten (Nord Stream 2 dispute: What you ought to know about the multi-billion project) by Jan Emendörfer of Redaktionsnetzwerk Deutschland (RND), published on the RND website https://www.rnd.de/wirtschaft/nord-stream-2-was-sie-ueber-das-milliarden-projekt-wissen-sollten-EWZ2H6J2S5HKJGDH34X7IA45H4.html?outputType=amp

While even the new minister of the economy from the green party, who is opposed to the project, stated that the certification process will follow the rule of law, additional time delay arose recently: Somewhat surprising even for many experts, the amended Third Gas Directive, transposed into German law, requires that an independent transmission operator (ITO) for Nord Stream 2 must reside in Germany. We have previously qualified the amendment as a discriminatory ‘Lex Nord Stream 2’ (https://gasvaluechain.com/cms/wp-content/uploads/2020/04/2020-04-28-GVC-Paper-Nord-Stream-2-Hypocrisy.pdf), since it affected only this project and at a time, when all permits by five states had been granted and billions had already been invested. The surprise requirement to have the ITO reside in Germany turns out to be another point of discrimination: E.g. the three Norwegian import pipelines beaching Germany are operated by the Norwegian company Gasco. And even Nord Stream 1 is operated by the Zug-based Nord Stream AG.

Nord Stream 2 AG had already applied for the ITO status a while back. Now, it needs to establish a German subsidiary and transfer asset ownership of the part of the pipeline within the German 12 sea miles zone. Meanwhile, the German regulator has stopped the clock on the certification procedure. This delay could bring Nord Stream 2 operability well into the middle of the year 2022.

As to American sanctions Read morethe recent Merkel/Biden accord envisioning extended Ukainian transit beyond 2024 is a ‘best efforts’ commitment at best, since Germany cannot dictate Russia with whom to conclude which contracts. Despite the accord, American resistance is not over, however, the tides may be turning: In the face to exponentially rising gas prices also at the Henry Hub, there is a rising number of political voices calling for a reduction of U.S. LNG exports.

Interview

London/Friedrichskoog, 21.12.2021

Wolfgang was interviewed for and quoted in an article titled ‘Nord Stream 2 certification hits international and political roadblocks’ by Diane Elijah, an energy expert from ICIS, published in ICIS Gas In Focus (GIF 28.22 of 21 December 2021), the leading gas industry report with an established audience of executives, analysts and traders since 1994.

One of the issues contemplated in the article is whether the contracting of Ukrainian transit beyond 2024 could become a condition for the certification of Nord Stream 2. Wolfgang pointed out that Germany’s statement to support such in the recent Merkel/Biden accord is a ‘best efforts’ clause at best, since neither Germany nor anybody else are in the position to dictate Russia with whom to conclude contracts.