EU wants to "limit gas": German chemical industry is not affected, Spain "strongly opposes"

The European Commission released a proposal on the 20th, proposing member states to reduce natural gas use by 15% to deal with the gas shortage problem faced by the EU

　　German chemical industry is not affected by gas restrictions, Spain "strongly opposes"

The German Chemical Industry Association (VCI) believes that the country's chemical industry is not affected by gas restrictions, while Spanish chemicals trade group FEIQUE "strongly opposes" the gas restriction plan

The VCI told ICIS on July 21 that the German chemical industry had little room for more natural gas savings and would not be affected by the European Union's plans to limit gas use

Spanish chemicals trade group FEIQUE said the EU should not impose the same amount of gas restrictions on all countries because Spain is not as dependent on Russian gas as Germany is

The VCI's proposal has already been implemented in Germany after the German government launched the second phase of its contingency plan in June to deal with a potential gas shortage, the VCI said

"The German chemical industry itself has little potential to save (gas)

The VCI expects that the EU gas curbs plan will not impose any restrictions on the production of the German chemical industry

In Spain, however, FEIQUE, along with other trade groups representing the energy-intensive industrial sector, issued a joint statement on the 21st imploring the Spanish cabinet to "strongly oppose" the EU plan

　　"(We) ask the Spanish government to strongly oppose a new regulatory measure being considered by the European Commission that would force member states to reduce their gas consumption by a pre-set percentage

　　FEIQUE warned that the measure "will force unnecessary industrial shutdowns, exacerbate product shortages and increase the economic impact of the crisis

　　Meanwhile, European chemicals trade group Cefic, of which FEIQUE is a member, said it agreed with the European Commission's plan to limit gas

　　"We agree with the European Commission's proposal to promote market-based tools that identify common principles and standards and, in extreme events of gas restrictions, provide guidance on how to identify priority sectors," Cefic said

　　European Union proposes to reduce natural gas consumption by 15% this winter, many European countries object

　　The European Commission announced a proposal on the 20th that from August 1, 2022 to March 31, 2023, member states take voluntary measures to reduce natural gas use by more than 15% compared with the average of the same period in the previous five years

　　The EU's energy policy chief, Kadri Simson, said that despite dwindling supplies from Russia and soaring prices over the past few months, countries' aggregate demand for natural gas has only fallen by 5%, and there is an urgent need for deeper cuts

　　The proposal requires that by the end of September this year, EU member states must update their contingency plans, formulate measures to reduce natural gas use, monitor the implementation of measures, and report to the European Commission every two months

　　The European Commission said that the plan to reduce the use of natural gas mainly focuses on industries such as industries.

　　The plan is currently "voluntary", but the EU would have the power to "enforce" it in the event of a supply emergency if Russia drastically cuts, completely cuts off gas supplies, or if at least three member states demand it
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　　Passing this scheme requires approval from most EU countries
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Diplomatic officials from various countries will discuss the proposal on the 22nd, with the aim of adopting the plan at an emergency meeting of energy ministers on July 26th
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　　However, this request has been opposed by several EU countries such as Greece and Spain
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　　Teresa Ribera, Spain's deputy prime minister and minister of ecological transition, stressed that the plan was "neither fair nor effective"
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She noted that the reduction in gas use could lead to a "severe loss of competitiveness" for Spanish industry, leading to a loss of economic dynamism
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　　Ribera said that Spain's natural gas storage capacity is now more than 80%, while the level of other European countries is about 50%
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"The Spanish people are not living beyond their capacity in terms of energy," Ribera said in a tough stance that "no matter what happens" the Spanish people will not suffer supply cuts
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　　Greek government spokesman Giannis Oikonomou said that the Greek government "does not agree with the EU's plan in principle" and has submitted its own proposal to the EU.
At present, 40% of Greece's natural gas depends on imports from Russia
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　　Portugal's energy secretary, Garamba, said the country was equally opposed to the EU's plan, noting that the bloc had not taken into account the fact that Portugal lacked a natural gas pipeline connection to the rest of Europe
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　　In addition, Italy, Poland and Hungary also have reservations about the EU plan
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Hungary has repeatedly said it opposes EU sanctions on Russian oil and gas
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　　Over the years, Russia has supplied about 40% of the European natural gas market.
Last year, the total gas transmission volume was about 155 billion cubic meters, a decrease from previous years
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Since June this year, Russia has cut its natural gas supply to Europe sharply, leading to aggravation of the "gas shortage" in Europe and a surge in natural gas prices
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