Europe considers joint gas imports as Russia-Ukraine crisis raises power cut fears

German businesses are holding talks with regulators on the impact of potential gas shortages

Germany is among the countries rethinking its energy strategy to reduce reliance on Russian imports. Getty

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European countries will consider jointly buying natural gas in a strategy modelled on the acquisition of coronavirus vaccines as they look to end the reliance on Russian imports that has raised fears of power cuts.

As fallout from the war in Ukraine forces a rethink of Europe’s energy strategy, businesses in Germany have been holding talks with regulators to prepare for potential gas shortages if Russia turns off the tap next winter.

The talks have looked at a worst-case scenario where industry has to shut down in Europe’s largest economy because household consumers would be given priority for scarce energy rations.

“It’s about being prepared for a situation that we hope never arises,” said Klaus Mueller, president of Germany’s Federal Network Agency, which regulates electricity and gas markets.

Germany is among the countries already making overtures to the Gulf to fill the gap, but future purchases could be made jointly with all 27 members of the EU in the latest step towards integration.

The proposal will be considered by EU leaders at a summit in Brussels this week, where US President Joe Biden will make a guest appearance after talks with Nato leaders across town.

“Europe should definitely use better its enormous weight, the scale of our European economy when it comes to the negotiating of energy prices,” said Maros Sefcovic, a senior member of the European Commission.

A firefighter works at a residential district that was damaged by shelling, as Russia's invasion of Ukraine continues, in Kyiv, Ukraine. Reuters

A woman removes pieces of broken glass from a shop window after a bombing in Kyiv, Ukraine. AP

Residents clean the street outside apartments damaged by shelling, in Kyiv, Ukraine. AP

A man walks at a residential district that was damaged by shelling, as Russia's invasion of Ukraine continues, in Kyiv, Ukraine. Reuters

Rescuers work at the site of buildings damaged by shelling, as Russia's invasion of Ukraine continues, in Mykolaiv, Ukraine. Reuters

Launch of missiles by the coastal missile system 'Bastion' on infrastructure facilities of the Armed Forces of Ukraine from an undisclosed position in Crimea. As a result of a strike with long-range precision weapons, an arsenal with weapons and military equipment of Ukrainian troops in the village of Orzhev, 14 kilometres north-west of the city of Rivne, two Tochka-U launchers near Kiev, and eight anti-aircraft missile systems were destroyed. EPA

Pictures lie amidst the rubble of former teacher Natalia's house which was was hit in a military strike, amid Russia's invasion of Ukraine, in Kyiv, Ukraine. Reuters

A Ukrainian serviceman rests at his position in Kharkiv, Ukraine. AP

A hug for a child at the railway station in Przemysl, near the Polish-Ukrainian border, as Ukrainian refugees make their way out of the war zone. AFP

Displaced Ukrainians on a Poland-bound train bid farewell at Lviv, western Ukraine. AP

Ukrainian servicemen rest in Kharkiv. AP

A car wrecked and burnt by shelling in a street in Kharkiv, Ukraine. AP

A member of pro-Russian unit in uniform without insignia handles a mortar round at a weapons depot near Marinka, in the Donetsk region of Ukraine. Reuters

The aftermath of shelling in the eastern Ukrainian city of Kharkiv. EPA

Nurses in tears after Russian shelling of a psychiatric hospital in Mykolaiv, southern Ukraine. AFP

Candles and lights form a giant peace sign during the Avaaz vigil in front of the European Council and Commission buildings in Brussels, Belgium. AP

A wrecked car in a ruined street in Kharkiv, Ukraine. AP

Rescue workers at an industrial building damaged by an air strike in Kyiv, Ukraine. Reuters

The monument to the Duke of Richelieu, one of the founders of the city of Odesa, is covered by sand bags. Near by, a placard shows the building before the Russian invasion. EPA

People clean up a room in an apartment building in Kyiv destroyed in an air raid, as Russia presses on with its invasion of Ukraine. Reuters

An instructor shows citizens how to fire the weapon during a shooting training session in Ivano-Frankivsk, Ukraine. Reuters

Russian troops hurl stun grenades at demonstrators protesting against the invasion, in Kherson, Ukraine. Reuters

Ukrainian servicemen stand guard at a military checkpoint in Kyiv. AFP

Ukrainian refugees Sasha Alexandra and Olena embrace shortly before being allowed to cross into the United States to seek asylum in Tijuana, Mexico. They fled their city of Dnipro this month and travelled to Germany before flying to Mexico. AFP

Ukrainian President Volodymyr Zelenskyy in a broadcast speech in Kyiv, calling on citizens to 'drive the occupiers out'. EPA

An unexploded rocket in a cemetery in Mykolaiv, southern Ukraine. AFP

A portrait of a young woman who died during a Russian attack, next to her fresh grave in the Mykolaiv cemetery. AFP

Tents set up for Ukrainian refugees inside a train station in Bucharest, Romania. AFP

Workers cover a sculpture outside the home of Lviv National Opera to protect it from damage amid fighting in Ukraine. Reuters

Olena, the mother of Denys Snihur, a 25-year-old soldier killed by Russian shelling in the northern town of Ovruch, mourns him at his funeral in Lviv. Reuters

All that is left of a shopping centre after shelling in Kyiv. AP

Civilian volunteers attend a Ukrainian Territorial Defence Forces training camp in Brovary, north-east of Kyiv. AP

Refugees at a temporary accommodation centre in a school gymnasium in Taganrog, Russia. EPA

Oil storage tanks burn in Chernihiv, Ukraine, in a satellite image from Maxar Technologies. EPA

President Joe Biden discusses the US response to Russia's invasion of Ukraine at the Business Roundtable CEO Quarterly Meeting. EPA

The wreck of a Russian military vehicle near Kharkiv. EPA

Firefighters work at the site of a shopping centre bombing in Kyiv. Reuters

Seven-year-old Amellia Anisovych, a refugee from Ukraine, sings the Ukraine national anthem at the start of a fund-raising concert in Lodz, Poland. Amellia became known for singing a song from the film 'Frozen' in a bomb shelter in Kyiv. AP

People queue at the National Stadium in Warsaw to apply for ID numbers that will entitle them to work and receive free health care and education in Poland. AP

Checkout tills are damaged at a supermarket in a shopping centre that was damaged in a bombing in Kyiv. Reuters

Cars are damaged at the site of a bombing at a shopping center in Kyiv. Reuters

A woman comforts a boy while refugees wait for Ukrainian police to check their papers and belongings in Brovary, Ukraine. AP

A refugee family sit in front of a tent at a temporary shelter offered by the Free Christian Church in Uszka, Hungary. Getty Images

Firefighters carry a ladder across the debris following Russian shellings that destroyed the Retroville shopping mall in Kyiv. AFP

A rescuer inside a shopping mall damaged by an airstrike in Kyiv. Reuters

Mr Sefcovic said Europe should draw lessons from its joint procurement of vaccines, which was criticised when the UK and US raced ahead of the bloc in early immunisations but has since been hailed as a success by the EU.

There are also suggestions that joint purchasing could be extended to hydrogen and liquefied natural gas, fuel sources that could be shipped from overseas and thereby reduce Europe’s dependence on Russian pipelines.

The port of Rotterdam aims to become the hub of hydrogen imports in Europe and is exploring potential deliveries from countries including Iceland, Australia and Canada.

Germany is planning to build two LNG terminals to handle the low-temperature imports from potential suppliers such as the US and Qatar, while also speeding up its expansion of solar and wind energy.

"We will end this dependence as quickly as possible,” German Chancellor Olaf Scholz told MPs on Wednesday.

However, Berlin has so far held out against an immediate EU embargo on energy imports from Russia, arguing that the social and economic consequences might make such a measure unsustainable when fuel prices are already high.

A convoy of lorries during a demonstration against rising diesel prices in Barcelona, Spain. Europe's potential energy crunch comes at a time when some motorists are already up in arms over high fuel prices. Reuters

That debate is likely to resume at the EU summit on Thursday and Friday, with the US announcing that another package of sanctions will emerge from the diplomatic showdown. The talks are also expected to address the humanitarian fallout of the war.

Russia provides about 45 per cent of gas and coal and 25 per cent of oil supplies to the EU, with some ministers complaining that Europe is effectively financing Moscow’s onslaught on Ukraine.

The European Commission has been tasked with drawing up proposals to eliminate this reliance on Russian fossil fuels and says it could be achieved before 2030.

One idea being floated by the commission is to require a minimum level of gas storage before winter that would prevent what Mr Sefcovic called a scramble for energy in December and January.

The legislation under discussion would require countries to have their gas terminals 90 per cent full at the start of November, he said, preparing them for either geopolitical shocks or severe weather.

Germany's stocks have fallen as low as 35 per cent in recent months amid suspicion that the Kremlin has already begun using gas as political leverage.

Berlin sees next winter as the potential flashpoint but has ruled out postponing the December 2022 switch-off date for its last three nuclear reactors, which it says would make little difference and be technically difficult to keep online.