In 2010, Germany’s TPES amounted to 331.50 mtoe, a 4% increase compared to 2009. Oil accounted for 105.43 mtoe, while coal and gas accounted for 76.42 mtoe and 79.69 mtoe respectively. Other sectors accounted for 69.96 mtoe. ^[1]

*other: hydro, geothermal, solar, wind, electricity & heat, biofuels & waste

^[1]

*other: nuclear, hydro, geothermal, solar, combustible and renewable waste

^[1]

• 1. Natural Gas Information © OECD/IEA, 2011

the previous year. In 2009, Germany consumed a total of 93,508 mcm of natural gas, 5% less than in 2008. Of its consumption in 2009, 20,826 mcm were used for transformation and 18,994 for industry (excluding the energy industry itself, which used 932 mcm), while 50,398 mcm was consumed by other sectors.*

Transformation includes the generation of electricity, while the demand from the ‘Industry’ refers to gas used for such things like the chemical-, iron and steel- and machinery industry. The demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works. ^[1]  

*other: commerce and public, residential, agriculture, non-specified

^[1]

*other: commerce and public, residential, agriculture, non-specified

^[1]

• 1. Natural Gas Information © OECD/IEA, 2011

Germany holds some indigenous gas resources, though limited. It hosts approximately 0.05% (87 bcm at the end of 2010) of the world total reserves. Five EU countries hold larger gas reserves than Germany (Czech Republic, the Netherlands, Norway, Poland, UK). The reserves-to-production ratio* for Germany is 6.5 years, lower than the EU’s average R/P ratio of 14 years. ^[1]  

*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.  

• 1. Natural Gas Information © OECD/IEA, 2011

Germany’s gas production peaked in 1979 and has been decreasing ever since. In 2010, Germany was the fourth largest gas producer in the EU, producing 13,151 mcm of natural gas; almost 12% less that in the previous year. ^[1]

• 1. Natural Gas Information © OECD/IEA, 2011

^[1]

^[1]

In 2010, Germany imported 2.4% more gas than its domestic consumption (99,663 mcm in total), making Germany the second largest gas importer in the world in absolute terms, after the US. All of Germany’s gas imports are being accomplished via pipeline, so far there are no LNG imports. Most of the gas pipeline imports originate from Russia, Norway and the Netherlands. The share of Holland and Russia in Germany’s gas imports increased in 2010 to 24.2% and 39% respectively, while the share of Norwegian gas in Germany’s imports decreased to a contracted 32.8%. ^[1]  

• 1. Natural Gas Information © OECD/IEA, 2011

Germany does export some natural gas according to the IEA, but no specific information is available on this, except for the total (see the first table in section 2).

^[1]

• 1. Natural Gas Information © OECD/IEA, 2011

Existing Infrastructure

In 2011 there were 17 TSOs active on the German gas market, of which eight major ones (see table below). In this period, the whole length of the German transmission system amounted to approximately 31,500 km of pipeline with a total compressor power of approximately 2,000 MW. The national grid is interconnected with foreign pipelines through 38 international cross border points with Austria, Denmark, Norway, the Netherlands, Czech Republic, France, Poland, Belgium, Luxemburg, and Switzerland. ^[1]

Gas Infrastructure Projects

There are several planned pipeline projects to be developed in the near future on the German market, two of them are particularly interesting. The OPAL (Ostsee Pipeline Anbindungsleitung) and NEL (Nordeuropäische Erdgasleitung) pipelines are intended to transport approximately 55 bcm/year of natural gas imported via the Nord Stream pipeline from Russia. Both pipelines are planned to be built through the collaboration of WINGAS and E.ON Ruhrgas (and for NEL also Dutch Gasunie). The pipelines will be operated by OPAL NEL TRANSPORT GmbH and E.ON Ruhrgas Nord Stream Anbindungsleitungsgesellschaft GmbH. The OPAL pipeline will start at the landfall point of the Nord Stream pipeline in Lubmin and will run for 470 km to the German-Czech border where it will be connected to the Czech transmission system. It has a planned capacity of 35 bmc/year and is likely to come online in 2012. The 440 kilometer long NEL will also start at the landfall point of the Nord Stream pipeline in Lubmin, near Greifswald, and run towards Rehden where it will be connected to the transmission systems of WINGAS and E.ON Gastransport. From these systems, further major European transmission systems can be reached. The pipeline has a planned capacity of 20 bcm/year and is expected to come online in November 2012. ^[1], ^[2]

^[1]

• 1. ENTSOG Ten Year Network Development Plan 2011-2020
• 2. OPAL Energy for Europe 2011-2012

In August 2011 there were no operational LNG terminals in Germany. However there are three regasification terminals proposed for the coming years (see table). ^[1], ^[2]

^[1], ^[2]

• 1. Gas Infrastructure Europe: GLE LNG Map August 2011
• 2. Global LNG Info - World's LNG Liquefaction Plants and Regasification Terminals 2012

In August 2011 there were 51 operational storage facilities in Germany, of which 48 have a combined technical storage capacity of 20,804 mcm. There were 24 salt cavities, 12 depleted gas fields, 9 aquifers, 2 depleted oil fields, and 1 LNG peak shaver (some sites have multiple types, for two sites it’s unknown). These 48 sites have an aggregated withdrawal capacity of 488 mcm per day and 201.06 mcm/day injection capacity. ^[1]

^[1], ^[2], ^[3]

In addition to the existing storage capacity, in August 2011 there were 24 projected storage facilities in Germany with a combined technical storage capacity of 10,526 mcm. This includes 22 salt cavities, 1 depleted gas field and 1 aquifer.

^[2], ^[3]

• 1. Natural Gas Information © OECD/IEA, 2011
• 2. Gas Infrastructure Europe: GSE Storage Map August 2011
• 3. ENTSOG Ten Year Network Development Plan 2011-2020

In 2011, nine companies, with multiple production facilities, are involved in the total volumes of gas produced in Germany and many trading companies are present. The number of German trading hubs has been significantly decreased though, to only three main ones: VHP-GASPOOL-H, VHP-THYSS-H, and VHP NCG-H. In the wholesale sector, gas supply contracts between importing wholesalers and regional and/or local traders and suppliers have been proscribed by the Federal Cartel Office.  In 2007, municipality utilities started to diversify and optimize their procurement portfolio and began purchasing (part) of the gas volumes from different sources. Nevertheless, this development alone was not enough to allow for effective competition on the gas market as defined under the competition law. According to the Federal Cartel Office, in 2007 the wholesalers still held a dominant position on the natural gas market. Therefore, in October 2007, the two-contract model was introduced by the Federal Network Agency having an important effect on the gas trade markets. This caused that, on the German virtual trading points, the traded quantities have increased substantially. At these virtual trading points trade is concentrated mostly on the spot market.  Total gas-fired power generation amounted to 24,620 MW in 2011. ^[1], ^[2], ^[3]

• 1. International Energy Regulation Network 2006-2009
• 2. Natural Gas Information © OECD/IEA, 2011
• 3. ENTSOG Ten Year Network Development Plan 2011-2020

Also in the transmission and distribution part of the ‘gas value chain’, new (European) laws have significantly changed the field. The German Transmission System Operators (TSOs) are mostly privatized, the grid being owned and operated by private companies, with the local authorities and the federal states still holding some shares. A similar situation concerns the DSOs (Distribution System Operators), which are also partly privatized, with the federal states and the local authorities retaining shares to some extent. Some are regional, and more than 700 are local DSOs. Some vertical integration with TSOs has taken place. Distribution concessions are no longer exclusive and demarcation rights have been abolished. On the German market there are 17 TSOs. The German Energy Law was substantially changed by the Energy Act that entered into force in July 2005. Network operations now have to be unbundled from supply operations for example. Transposition of the EU’s Third Legislative Package on Energy will bring further changes to the law, e.g. regarding the mentioned unbundling. Specific energy regulators were established on the federal level (Federal Network Agency, FNA) and the Länder level. According to the new legal framework, network access fees first needed ex ante authorization of the regulator. This cost plus regulation was replaced by an incentive regulation granting revenue-caps to the network operators, following decision by the FNA. Network access is granted according to a non discriminatory entry-exit-system. The network operators’ reports indicate that in terms of capacity, bottlenecks are still present, especially with regard to feed-in capacity at the borders. Furthermore, it becomes clear from the reports that congestion management is currently implemented only to a marginal degree, both on the secondary markets as well as in auctions for contractual bottlenecks and the withdrawal of capacity (“use it or lose it”). However, by integrating the networks within the market areas, the issue concerning exit-capacities should ameliorate. Both the availability of import capacity and market area coupling capacities are vital to the liquidity of the trade markets within the market areas (virtual points). ^[1], ^[2], ^[3]

• 1. International Energy Regulation Network 2006-2009
• 2. Natural Gas Information © OECD/IEA, 2011
• 3. ENTSOG Ten Year Network Development Plan 2011-2020

On the 29th of April 1998 the Energy Statutes Reorganization Act (Federal Law Gazette Part I no. 24 of 28 April 1998) was enacted, opening up the German gas market for a full 100%. Since 1 January 2009 an incentive regulation encourages system operators to run the system more efficiently. The regulatory authorities grant system operators revenue caps that are based on a benchmark of costs connected to the system operation. Approved revenue caps are then transposed into non discriminatory network access fees charged to a customer. The Federal Network Agency improved considerably the necessary conditions for more competition on the gas market. By introducing standardized business processes for switching gas suppliers and standardizing processes and data formats, the consumers were offered suitable opportunities to change suppliers if they wish to do so. The reporting concerning the 2007 period indicates that almost all network operators (97.1% of DSOs and 95% of TSOs) declared that they generally implement procedures for supplier changes. In addition, the retail prices of natural gas are not subject to regulatory approval, however they do fall under the supervision of anti-competitive practices by the Cartel Offices. ^[1], ^[2]  

• 1. International Energy Regulation Network 2006-2009
• 2. Natural Gas Information © OECD/IEA, 2011