German manufacturers are facing significant challenges as natural gas prices surge across Europe. Some companies, unable to secure long-term contracts, are left vulnerable to volatile spot market prices. Among them is SKW Stickstoffwerke Piesteritz GmbH, Germany’s largest ammonia producer and a major industrial consumer of natural gas. The firm reports heavy reliance on short-term purchases, with prices recently spiking above €100 ($112) per megawatt-hour for the first time since the 2022 energy crisis.
The German government has urged gas importers, including state-owned SEFE and Uniper SE, to sign long-term contracts to mitigate exposure. However, not all manufacturers have this option, leaving them fully exposed to the current price surge. The situation highlights the risks for industries dependent on short-term gas supplies in an increasingly unstable market.