# Germany’s gas crisis in charts: Pipeline repair, and then what? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-07-08 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Germany's Gas Crisis: Impact on Economy and Homes Meta Description: Explore the impact of the temporary stop in gas flow from Russia to Germany through the Nord Stream 1 pipeline and the potential consequences on both URL: https://financedigest.com/germanys-gas-crisis-in-charts-pipeline-repair-and-then-whathtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-07-08t123636z2lynxmpei670k3rtroptp4ukraine-crisis-germany-gas-1736815593547-compressed.jpg) By Vera Eckert and Tom Sims FRANKFURT (Reuters) – The flow of gas from Russia to Germany through the Nord Stream 1 pipeline will stop on Monday for a planned 10-day maintenance period. The question is: Will flows then resume? Germany is largely dependent on Russian gas to fuel its export-led [economy and to keep](https://www.financedigest.com/thomson-reuters-keeps-outlook-but-wary-of-slowing-economy.html "Thomson Reuters keeps outlook, but wary of slowing economy") homes warm. But [Europe’s largest](https://www.financedigest.com/uk-card-fraud-losses-climbed-18-percent-in-2015-largest-rise-in-europe.html "UK CARD FRAUD LOSSES CLIMBED 18 PERCENT IN 2015, LARGEST RISE IN EUROPE") economy has been bracing for a possible complete halt in Russian supplies if Moscow steps up its use of gas as an economic weapon against the West while it wages war in Ukraine. ![A temporary stop](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/223.jpg) Graphic: A temporary stop? https://graphics.reuters.com/UKRAINE-CRISIS/zdvxobyrepx/chart.png Already down from last year, Russian gas flows slowed even further through the [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") 1 pipeline last month, and Berlin moved to the second of three stages of its supply emergency plan. Industry executives and [economists are scrambling to figure out how Germany](https://www.financedigest.com/germany-heading-for-recession-despite-new-relief-plan-economists.html "Germany heading for recession despite new relief plan – economists") will fare in the coming months and beyond, and where it is especially vulnerable. Germany is known for its cars, and its machine tools fill factories throughout China, but sectors likely to be [hardest hit](https://www.financedigest.com/digital-divide-hits-rural-black-americans-hardest.html "‘Digital divide’ hits rural Black Americans hardest") are also its glass and chemicals industries. Here are six charts that illustrate Germany’s exposure: 1\. The [Nord Stream](https://www.financedigest.com/new-intelligence-points-to-pro-ukraine-group-in-nord-stream-attack-nyt.html "New intelligence points to pro-Ukraine group in Nord Stream attack -NYT") 1 pipeline from Russia through the Baltic Sea is the most important direct gas route into Germany. Before the start of maintenance, flows are already down to 40% of capacity, with [Russia citing trouble with turbines and sanctions](https://www.financedigest.com/switzerland-adopts-new-eu-sanctions-on-russia.html "Switzerland adopts new EU sanctions on Russia"). There is concern that after the maintenance [period the pipeline closes](https://www.financedigest.com/home-care-chemicals-market-is-expected-to-expand-at-a-cagr-close-to-5-over-the-assessment-period-of-2021-and-2031.html "Home Care Chemicals Market is expected to expand at a CAGR close to 5% over the assessment period of 2021 and 2031") for good. In that event, [storage caverns would not be filled](https://www.financedigest.com/analysis-russian-gas-flow-too-low-to-fill-europes-storage.html "Analysis – Russian gas flow too low to fill Europe’s storage") in time for the winter heating season, which is just three months away. ![Slower flow](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/224.jpg) Graphic: Slower flow https://graphics.reuters.com/UKRAINE-CRISIS/jnpwedgxmpw/chart.png 2\. It’s not just Germany. Gas flows to Europe are also curtailed via routes linking Russia with Slovakia, the Czech Republic and Austria via [Ukraine and on another route through Belarus](https://www.financedigest.com/france-says-belarus-could-face-more-sanctions-if-it-gets-increasingly-involved-in-ukraine-conflict.html "France says Belarus could face more sanctions if it gets increasingly involved in Ukraine conflict") and Poland. ![Gas to Europe](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/225-550x500.jpg) Graphic: Gas to Europe https://graphics.reuters.com/UKRAINE-CRISIS/lbvgnxmaypq/chart.png 3\. Less gas and caps on prices for consumers have put the squeeze on [energy suppliers](https://www.financedigest.com/french-energy-suppliers-will-let-struggling-bakers-renegotiate-contracts-le-maire.html "French energy suppliers will let struggling bakers renegotiate contracts – Le Maire") like the German utility Uniper, which is in talks with the government about a possible bailout. Uniper’s plight is so far the most vivid example of the war’s effect on corporate Germany. ![Uniper plunge](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/226.jpg) Graphic: Uniper plunge https://graphics.reuters.com/UKRAINE-CRISIS/zdvxobyxepx/chart.png 4\. [German industry](https://www.financedigest.com/german-new-passenger-car-registrations-up-3-in-august-industry-source.html "German new passenger car registrations up 3% in August – industry source"), which includes titans like Volkswagen and Siemens, is the biggest consumer of gas, but half of all households, which heat with gas, aren’t far behind. Emergency plans [say homes should be prioritised if the state is forced](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024") into rationing, alongside hospitals and essential services, but there are also calls to make households part of savings programmes. ![Gas sales by customer group](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/227.jpg) Graphic: Gas [sales by customer](https://www.financedigest.com/yum-beats-sales-estimates-as-customers-flock-to-kfc-taco-bell-deals.html "Yum beats sales estimates as customers flock to KFC, Taco Bell deals") group- https://graphics.reuters.com/UKRAINE-CRISIS/lbpgnxwywvq/chart.png 5\. Within the industries consuming gas for their processes, Germany’s chemical [sector is the biggest single consumer](https://www.financedigest.com/consumer-durables-sector-still-feeling-the-effects-of-recession.html "Consumer durables sector still feeling the effects of recession"). According to Moody’s, BASF alone uses 4% of Germany’s gas at its Ludwigshafen site. In a scenario of reduced gas availability, European chemicals producers could face at least two [winters with tight gas supplies,”](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says") Moody’s said in a research note, adding costs would go up as well. ![Gas use by industry](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/228.jpg) Graphic: [Gas use by industry](https://www.financedigest.com/the-top-strategies-for-investing-in-the-oil-and-gas-industry.html "The Top Strategies for Investing in the Oil and Gas Industry") https://graphics.reuters.com/UKRAINE-CRISIS/gdpzygnaqvw/chart.png 6\. In the grimmest scenario, a complete [halt to Russian](https://www.financedigest.com/eu-says-full-russian-gas-halt-would-slash-gdp.html "EU says full Russian gas halt would slash GDP") natural gas exports could cost Germany 12.7% of economic performance in the second half of 2022, according to the Bavarian vbw industry association. That would translate into 193 [billion euros](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros") ($195.57 billion) in total economic losses. Germany may be famous for its cars, but the industries that stand to see their activities most curtailed by lack of gas include glass, iron and steel, ceramics, food and printing, with vast [knock-on effects](https://www.financedigest.com/banking-turmoil-will-not-have-knock-on-effect-on-commodities-trafigura-cfo.html "Banking turmoil will not have knock-on effect on commodities -Trafigura CFO") to other sectors. ![Hardest-hit industries](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/229-512x500.jpg) Graphic: Hardest-hit industries https://graphics.reuters.com/UKRAINE-CRISIS/egpbkgbzgvq/chart.png ($1 = 0.9869 euros) (Reporting by Vera Eckert and Tom [Sims](https://www.financedigest.com/simalliance-members-report-shipments-of-4-9-billion-sims-in-2017-while-estimated-total-available-sim-market-in-2017-increases-2-75-to-5-6-billion-units.html "SIMalliance Members Report Shipments of 4.9 Billion SIMs in 2017, while Estimated Total Available SIM Market in 2017 Increases 2.75% to 5.6 Billion Units   ") Additional reporting by Ludwig Burger; Editing by Mark Potter and Louise Heavens) --- This blog is powered by Superblog. 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