Coronavirus may delay German gas market conversion

The coronavirus pandemic may result in delays to Germany's conversion of low-calorie systems and appliances to high-calorie supply.

The timeframe available for the conversion will be extended as a result of the pandemic, Germany's economic ministry has said.

The ministry and regulator Bnetza have received a mounting number of notifications from companies alerting them that it has become difficult to carry out works required for the conversion of households and businesses because of social distancing measures. The measures have made it more difficult to access appliances, while companies are struggling to cope with the increasing number of sick leaves, the ministry said.

Requests to adjust the conversion plans accordingly are therefore understandable, the ministry said. It will be up to system operators, which carry the legal responsibility for the switching process, to decide whether any new conversion processes will be started. But processes that have been launched will have to be completed to ensure security of supply.

The conversion process is intended to reduce Germany's dependence on low-calorie imports from the Netherlands. Low-calorie production from the Netherlands' giant Groningen field is to be phased out in the coming years in a bid to reduce seismic activity in the region.

The switch has proceeded ahead of schedule, already reducing German low-calorie demand more than expected, a task force monitoring the switch said earlier this year.

The share of German low-calorie demand in overall consumption shrank further over the past winter from previous years, in turn lifting the country's need for high-calorie supply.

The conversion is scheduled to be completed by the end of this decade, with the number of converted systems expected to peak in the next few years.

Besides Germany, Belgium and France also are in the process of switching away from low-calorie use to reduce demand for Dutch supply.

By Stefan Krümpelmann