LAST UPDATE: 14.16
European natural gas prices fell on Thursday after Russian flows through the Nord Stream pipeline resumed as 10-day maintenance work ended, Bloomberg reported.
Russian gas began flowing to Germany on Thursday at about 30 percent of the pipeline’s capacity between 6 a.m. and 7 a.m. local time. The orders show that the pipeline will operate at around 40% of capacity for the rest of the day, roughly the same levels as before the start of maintenance work.
The resumption of flows provides some relief in Europe as the region struggles to fill storage ahead of winter. European Union officials were preparing for the worst-case scenario with a plan to cut natural gas consumption by 15 percent. Commissioner Johannes Hahn even stated yesterday that he did not expect the pipeline to resume.
“This morning’s resumption of flows in Nord Stream is likely to bring relief not only to the European gas market, but also to the wider economy,” said Tom Marzec-Manser, head of gas analysis at ICIS in London. Flows reaching Germany are a bearish factor for natural gas, even if the pipeline is operating at reduced levels, he said.
The Dutch contract – the European benchmark – fell 5.7% to 146 euros per megawatt hour. Earlier, it “touched” a drop of up to 6.5%.
Source: Capital
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