In the case of a gas shortage Switzerland has an advantage

In the event of a disruption of Russian gas supplies to Europe, Switzerland will also have to scale back its consumption. However it would have an advantage over other countries because of its connections in every direction.

As is well-known, we have scenarios whereby Russia may cease its gas supplies or where the West may decide to stop importing gas from Russia as a sanctions measure. «We have to be prepared for this,» Thomas Hegglin of the Swiss Association of the Gas Industry (VSG) told the financial agency AWP.

A shortage of Russian gas supplies could not be fully offset within Europe, certainly not in the short term and also not without cutting consumption. In such a scenario, Switzerland would however still have an important advantage, since it could continue to draw gas from the South - from North Africa via Italy - as well as from Azerbaijan.

If a shortage were to occur in Switzerland, the Confederation would take «management steps.» These include, for instance, a switch to heating oil for dual-fuel consumers (in which natural gas can be substituted for heating oil), appeals for savings, and capping requirements for large consumers.

Currently, though, the security of gas supply in Switzerland is largely secured, Hegglin says. There should be enough gas for its industry, even though prices are at an exceptionally high level.

The great challenge, however, is to secure the gas supply for the coming winter. This is precisely why the Federal Council has already decided on measures at the start of March. The gas companies are therefore expected to be able to proceed with the joint purchase of gas, storage capacity and liquefied natural gas (LNG).

The gas industry intends to present a solution to the Federal Council within the next few weeks - along with the responsible departments and authorities, according to Hegglin.

The country does not produce natural gas, so all demand needs to be imported. Furthermore, Switzerland has virtually no commercial gas storage facilities. The federal government primarily purchases its gas at trading points in neighboring Germany, France and Italy, as well as the Netherlands. In 2020, slightly less than half of Switzerland's gas came from Russia, statistics from the trade association show. Norway provided a scant quarter and the European Union (EU) a fifth. Algeria still represented 3 % of supplies.

The EU wants to decrease Russian gas imports by two-thirds by the end of the year from the previous year. Over 40% of imported gas comes from Russia; Germany in particular is reliant on Russian imports. In comparison, Switzerland's gas consumption is quite low. The raw material accounts for about 15% of the country's energy demand.

As a result of the Russian invasion of Ukraine six weeks ago, the EU states have come to an agreement on a ban on Russian coal imports as part of the new sanctions. However, there will be a four-month transition period.