Frankfurt, Sept. 9, (dpa/GNA) - Germany’s third-largest gas importer and operator of storage units is expected to petition the Economics Ministry for financial assistance on Friday, a further sign of the stresses facing the industry amid turmoil on energy markets.
VNG, a subsidiary of Energie Baden-Württemberg (EnBW), will be making the application because current conditions are resulting in “significant losses due to extra acquisitions of natural gas,” noted EnBW. Additionally, aid is needed to keep the business operational.
Gas has become a rare commodity in recent weeks as Russia has turned off the taps to its pipelines. Russia says that is because Western sanctions have made it impossible to operate the pipelines, even though European countries have not sanctioned gas and are willing to pay for it.
European countries say the shut-off is retribution for the sanctions, which were put in place to protest Russia’s invasion of Ukraine.
The situation has caused the price of gas to skyrocket, meaning German firms are paying significantly more than planned to provide promised gas deliveries to businesses and communities, tipping the companies into loss.
According to the firm, VNG is responsible for providing about a fifth of Germany’s gas consumption, particularly in the country’s east.
The company also wants to enter into talks with the government about stabilizing government operations.
GNA