Tuesday, August 9, 2022

Natural Gas Chatter in Germany

 First, it came out via the FDP Party this morning.....that they want the Chancellor to pick up the pieces of this Qatar natural gas 'sales' deal.  It's come out now that Qatar hasn't really moved on the deal, and delivery is now a question mark.  Scholz in the middle?  I don't think he wants the job.

Why Qatar is on the slow-end at this point?  I think they want more than what Germany openly discussed at the deal-table (three months ago).

Second, the German Federal Network Agency (the folks in charge of viewing the flow of natural gas into Germany).....have been using a model that suggests Russia is flowing 40-percent of the normal amount via Nord Stream I.  

For the past month, the flow has actually been 20-percent of the normal amount.  So the reserve business model is crap....when you think about the implications.

Third, for reference, the chemical industry of Germany....uses 15-percent of the total natural gas 'pot' for their products.  So if you cut the flow....that industry will have to marginalize operations or cease production (for a while).  

Adding to this misery....from all industry (not just the chemical folks) in Germany....it's now believed that one out of every six companies has some plan in place to lessen/cease production if the natural gas flow gets really bad.  

Fourth.  I sat this week and review all the bottle items in the house...that require some form of natural gas in production.  Beer, wine, booze, sodas, and water.

Beer, sodas and water glass bottles are all on a deposit system....meaning I end up returning the bottles to the local grocery, to be refunded.  Wine and booze....no deposit (yet).

I have a particular brand of apple-wine which only comes in glass bottles, and I noticed about six weeks ago....the bottles rarely appear now at the grocery, and the escalation of pricing has started up.  

Fifth.  Your relative died and had requested to be cremated?  Well....there's now a discussion among the German crematorium 'chiefs'....which rely upon natural gas to run each center....that they aren't that sure about the supply, and pricing is now a problem.  We might end up with the Viking-style funerals because of the lack of gas. 

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