German Gas Imports Soar in March

German gas imports were up 23.3% year on year (yr/yr) in March, arriving at 580,899 TJ, according to preliminary data published by trade statistics office Bafa.

Prices paid on the border during the month came to €3,475 ($3,785)/TJ, or €1,250/MWh, down 32.6% yr/yr. German imports in the first three months of the year grew by 6.5% yr/yr to 1,622,412 TJ, while the price paid slumped 33.7% to €3,733/TJ.

European gas prices have been falling over the past year as a result of rising LNG imports. Lockdowns put in place since March to slow the spread of the Covid-19 pandemic have also weighed down on demand in some markets. But in some countries like Germany, cheap gas has displaced coal in the power sector. Low prices have also incentivised traders to store more supplies.

In early May, German grid operators launched a public consultation on an investment plan worth €8.5bn to prepare the country for rising gas imports. LNG will play a part as at least two terminals are planned with some degree of support from Berlin.