Denmark launches energy saving campaign; European gas supply 'under pressure'

Denmark has launched a new energy saving campaign to help manage the current "serious" gas supply situation in the country, the Danish Energy Agency (DEA) said June 28.

Denmark -- which imports the majority of its gas via Germany -- declared the first stage of its gas crisis planning on June 20 after Russia's Gazprom cut gas supplies via Nord Stream to just 40% of capacity on June 16.

In a statement, the DEA said it had become "extra important" to reduce energy consumption in Denmark. "Europe's gas supply is under pressure. This affects the price of energy and puts pressure on the supply in Denmark," it said.

European gas prices remain at sustained highs, given the continued Russian gas supply uncertainty.

The Dutch TTF month-ahead price was last assessed on June 27 at Eur129.15/MWh, up 56% since the start of the month and 300% higher year on year, according to Platts price assessments by S&P Global Commodity Insights.

DEA Director General Kristoffer Bottzauw said it was a "serious situation" that the agency was following closely.

"We can all make an effort to save energy, and we put ourselves in a better situation for every kilowatt-hour we save -- both for the sake of economy, climate and security of supply," Bottzauw said.

The agency said there were savings to be made that would lead to "increased independence from Russian gas."

They include shutting down gas heating during the summer, taking shorter showers, drying clothes outside, and disconnecting appliances before taking vacations.

Related Infographic: Europe on brink of gas crisis as Russia squeezes market

Contingency plans

Denmark's Orsted lost direct access to Russian gas supplies at the start of June when Gazprom halted deliveries under the parties' long-term contract due to the Danish company's refusal to comply with Moscow's new ruble-based payment system.

In the event of a gas shortage in Denmark, the DEA said it had an emergency plan ready to ensure that consumers can heat their homes this winter.

The plan includes, among other things, the release of emergency gas stocks and the suspension of supplies to big gas consuming companies.

Danish gas storage sites are also currently around 79% full, according to data from Gas Infrastructure Europe, meaning Denmark is already close to meeting its EU minimum storage obligation of 80% by Nov. 1.

Denmark is also one of Europe's biggest biogas producers, meeting around one quarter of its demand from renewable gas, and is set to return to net-exporter status next summer once the Tyra gas field redevelopment is completed.

"The Tyra field is expected to reopen by mid-2023. By 2024, Denmark will produce a total of 151% of our current gas consumption -- Tyra plus biogas production," the DEA said.