Natural Gas Wholesale Prices in Germany Are Up 20X Over Last Year.

Uniper is one of Europe's largest energy companies. It is German based. Uniper cultivated a long relationship with Russian suppliers dating back 50-yrs to the iron curtain days. They even set-up a Russian branch of the business, Unipro.

Incredibly, as with German leadership in general, Uniper had no concern Russia would ever use reduced NatGas supply as a weapon. There was zero preparation for that eventuality. There was no fall-back plan. How can people have their heads that far up their asses?

Anyway, two weeks ago Uniper went belly-up. Germany nationalized it for $8 Billion, the latest step in a $29 Billion bailout effort. LINK

Uniper CEO Klaus-Dieter Maubach discussed Europe’s deepening energy crisis earlier this month following Russia’s indefinite suspension of gas flows via the Nord Stream 1 pipeline. The 6 min interview was candid, occurred just prior to Uniper declaring insolvency, and is worth a watch. LINK

Keypoints:

• Maubach openly admits German Politicians and Uniper both made a litany of mistakes.

• Europe has no port capacity to import more Liquid Nat Gas. There is no supply redundancy. If there was, Germany/Europe would be able to manage the crisis without much of an issue. Building that infrastructure may take years.

• The worst is yet to come for Europe. NatGas WS prices are up 20-fold year-to-year.







... oh, and the obligatory pic of Germany's UN delegation laughing as President Trump predicted this fiasco.