major chemical concern switches to oil gas and fuel oil — EADaily, August 9, 2022 — Politics News, Russia News

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Evonik is cutting gas consumption by 40% and is switching part of its capacity from natural gas to LPG and fuel oil. Earlier, the Council of Europe approved a voluntary reduction in gas consumption in EU countries by 15%. Due to the situation with turbines for Nord Stream, Russian gas supplies have significantly decreased and European countries are forced to use dirtier types of fuel – from coal to fuel oil.

“The volume of released gas is equivalent to the annual consumption of more than 100,000 households,” Evonik said in a statement. The chemical concern, which is one of the 1000 largest companies in the world according to Forbes, believes that alternative fuels will help Germany replace 40% of imported gas.

“The most important measure was taken at our largest German plant in Marl. At the new gas power plant, we will use liquefied petroleum gas instead of gas. The liberated volumes of fuel will go to storage facilities. The concern is supported by the British BP,” Evonik said. Chairman of the Board of the concern Christian Kullman He added that European enterprises are for the most part protected in the event of a complete halt in Russian gas supplies.

The concern clarified that they annually buy about 1.4 billion cubic meters for the entire concern, and Germany accounts for a third of the volume. If in Belgian Antwerp there is no such dependence on Russian gas, then in Germany it can hit the entire chemical industry hard, Evonik noted.

The group added that they are also reducing the use of natural gas at five more German enterprises – in Steinau, Essen, Krefeld, Lulsdorf and Wesseling. There, natural gas will be partially replaced by fuel oil.

“We are waiting for a sharp increase in prices for LPG (liquefied hydrocarbon gases) and their shortage in the market”, – noted the deputy director of the FNEB Alexey Grivach. The expert added that the EU authorities unanimously waved to the environment.

Earlier, due to the situation with Nord Stream, Berlin was forced to announce a campaign to reduce gas consumption in the country and more widely use coal-fired power plants. The German authorities, who came to power in the wake of the fight against climate change, are forced to admit that the current situation is forcing them to move away from the EU Green Deal. At least in the near future.

At the same time, German enterprises are forced to refuse gas not only because of the reduction in supplies, but also its price, which exceeds $ 2,000 per thousand cubic meters on the market. The German regulator reported that in July fuel consumption in the country fell by two-thirds.

The Federal Grid Agency has updated the scenarios for Germany’s gas supply in the face of reduced Russian gas supplies, and they turned out to be worse than the previous ones. In the worst case scenario, according to the Federal Grid Agency, gas consumption in Germany should be reduced by at least 20% and additional gas import capacities should be sought. Stopping the Nord Stream will lead to the fact that the country will receive less than a third of its annual consumption.

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