Germany sets gas supply alert to lowest level as market overcomes turmoil of Russia’s war

The German government has lowered the country’s gas supply alert to the lowest level thanks to a “significantly improved” supply situation, the economy ministry has said. The country triggered the alert’s second of three crisis stages in the wake of Russia’s invasion of Ukraine in 2022.

At the time, Russia was still Germany’s principal supplier of natural gas and started to weaponise its energy reserves in a bid to undermine assistance to Ukraine by western European states.

“An obstruction of the gas supply is not to be expected,” the ministry said, adding that “natural gas is sufficiently available on the global market.” Prices have decreased considerably since 2022, the ministry said, as joint European efforts to replace Russian supplies have proved successful.

“We have managed to overcome the energy crisis that was caused by Russia’s war of aggression on Ukraine,” said economy minister Katherina Reiche. The new infrastructure for importing liquefied natural gas (LNG), a diversification of source countries, lower prices, and the national gas storage infrastructure all contributed to the improved situation, Reiche explained. “We will do everything to ensure that supply remains secure,” she added. However, since risks to supply cannot be ruled out entirely, the country has decided to keep its lowest alert level in place. 

Energy industry association BDEW said the changed alert level would not have any direct consequences on the gas market, as measures such as the expanded availability of alternative coal-fired power plants had already ended in 2024. BDEW head Kerstin Andreae said it would make sense to keep the lowest alert level in place to account for the volatile geopolitical situation. “The European Commission’s objective to fully do without natural gas supplies from Russia in the future strengthens diversification efforts further,” Andreae said.

According to the BDEW, 98 terawatt hours of Russian gas were officially imported to the EU in the first quarter of 2025 – 13 percent of all EU gas imports – three years after Russian president Vladimir Putin ordered the war on his country’s western neighbour. “This means the share of Russian natural gas is manageable and can be replaced by other sources,” Andreae said, adding that countries in southeastern Europe may find it harder to use alternative suppliers. Future gas prices in 2026 will be at 38 euros per megawatt hour (MWh), twice as high as before the invasion of Ukraine but well below the price peak of more than 300 euros per MWh in 2022, the industry group said.