German natural gas import costs leapt 189% in the first eight months of 2022 from a year earlier, even though imports were down by 26.1%, official monthly data showed.

The August statistics from Germany’s foreign trade office BAFA are the sixth to reflect the impact of Russia’s invasion of Ukraine, which began on Feb. 24, and Western sanctions against what the Kremlin calls its “special military operation”.

Europe’s biggest economy was more reliant on Russian gas than many neighbours, mostly supplied via the Nord Stream 1 pipeline that Russia halted, blaming Western sanctions while European politicians say Russia is weaponising energy.

Pipeline gas from Norway, the Netherlands, Britain and Denmark as well as providers of liquefied natural gas (LNG) on board ships have started playing a greater role.

Energy traders monitor the imports because supply and demand affect wholesale market prices and volumes, while the effects of supply shortages have also spread to industry, and contribute to inflation and recessionary trends.

Gas data also correlates with coal, as both compete in the production of electricity, while also giving clues about demand for mandatory European Union carbon emissions permits.

BAFA’s statistics, which are published with a two-month delay, showed January-August imports at 2,554,066 terajoules (TJ), or 72.6 billion cubic metres (bcm), compared with 3,458,434 TJ a year earlier.

As the supply disruptions propelled gas prices to record highs, Germany’s import bill increased to 49.5 billion euros ($48.4 billion) in the eight-month period, compared with 17.1 billion euros in the same period of 2021, the data showed.

The average price paid at the border as recorded by BAFA during January to August was up 292% year-on-year at 19,382.76 euros/TJ.

The import price of 41,255.25 euros/TJ for August alone, equivalent to 14.85 cents per kilowatt hour (kWh), was more than six times the August 2021 price of 6,580.62 euros.
Source: Reuters (Reporting by Vera Eckert Editing by Mark Potter)