Gazprom Germania honors contracts despite sanctions – German regulator

BONN, June 10 (Reuters) – Gazprom Germania, abandoned by Gazprom (GAZP.MM) in April, is able to fulfill its supply contracts by sourcing gas from alternative sources, said the president of the German network regulator.

The Bundesnetzagentur (BNetzA) was forced to take control of Gazprom Germania’s operations after Russian gas giant Gazprom relinquished ownership without explanation.

In addition, Russia placed parts of Gazprom Germania under sanctions last month, which “doesn’t make business any easier”, Klaus Mueller, whose BNetzA runs Gazprom Germania on an interim basis until the end of September, told Reuters TV.

“But we see that we can buy gas from other sources through Gazprom Germania. And that’s why contracts will continue to be fulfilled.”

As Germany remains concerned about possible disruptions to Russian gas supplies, the uneventful passing of an end-May deadline to adopt a new payment system demanded by Moscow has eased fears that a cut complete is imminent.

“At the moment we have a good supply of gas, but at exorbitant prices. Everyone should know that, whether in industry or in the private sector,” Mueller said.

BNetzA, which took over operations but not ownership from Gazprom Germania, is also tasked with rationing existing gas supplies if Moscow curbs or cuts off flows to Europe’s biggest economy.

Mueller, who took over as BNetzA chairman in March, renewed his calls for businesses and households to save as much gas as possible to fill Germany’s gas storage facilities, which are full to capacity. 52.9%.

Private households could save on their energy bills if they reduced their gas consumption, Mueller said, but this is more difficult for parts of German industry, which are heavily dependent on fuel for production.

Written by Christoph Steitz, edited by Miranda Murray and Barbara Lewis

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Alycia R. Lindley