Germany Declared it is moving to the "Alert Level" of its Emergency Gas Plan.
Robert Habeck, the Economy Minister of Germany, announced that the country would move to stage two of its three-stage plan. It means the largest economy in Europe sees a high risk of long-term gas supply shortages. Habeck warned that the extraordinary price rally of gas could persist as it has become a scarce commodity. Habeck said, "This will affect industrial production and become a major burden for many consumers. It's an external shock."
Russian gas supply has fallen sharply in Germany. The country's situation will be "really tight in winter" without precautionary measures to prevent the supply shortage. According to Germany's emergency gas plan, when there is a "disruption of gas supply or exceptionally high gas demand which results in significant deterioration of the gas supply situation," it triggers the alert level phase.
The EU receives around 40% of its gas via pipelines from Russia. It is trying to decrease its reliance on Russian Hydrocarbons in response to the months-long onslaught of the Kremlin in Ukraine. European Policymakers are currently scrambling to fill natural gas supplies in underground storage. They are trying to provide enough household fuel to keep the houses warm.