Russian gas supplies to Europe fell further on Thursday, sparking concerns over winter storage replenishment and a diplomatic row as Russian gas supplier Gazprom blamed Western sanctions for hampering maintenance work. .
Gazprom announced a second cut in the supply of the Nord Stream 1 pipeline to Germany, reducing flows to 40% of capacity.
Germany’s economy minister said the move was aimed at “sowing uncertainty and raising energy prices”. Dutch wholesale gas prices, a European benchmark, rose as much as 25% this morning.
Gazprom blamed the cutbacks in the delivery of Siemens Energy equipment, undergoing maintenance in Canada. Germany’s energy regulator, however, rejected that explanation.
Uniper, Germany’s biggest Russian gas importer, said deliveries from the eastern European country were down by a quarter from agreed volumes, but said it had managed to source the missing volumes from other sources.
Gas flows to Italy also dropped and Czech power utility CEZ said it had seen a similar cut in Russian gas supplies but was replacing missing volumes from other sources.
Austrian energy company OMV also said that Gazprom informed it of a reduction in gas deliveries. The cuts come as Nord Stream 1 is due for annual maintenance between July 11-21, when supply will be cut off completely.
They also come as the mainland looks to fill up storage for the winter while committing to reducing its dependence on Russian gas in the future.
Gazprom’s cut to Germany is a warning sign that could cause problems for Europe’s biggest economy this winter, the head of the country’s energy regulator told a newspaper on Thursday. “This would significantly worsen our situation,” Klaus Mueller told the Rheinische Post.
“Maybe we can get through the summer when the heating season is over. But it is imperative that we fill in the storage facilities to get through the winter,” she added.
UK offer
Meanwhile, Britain’s Centrica has signed an agreement with Norway’s Equinor for additional gas supplies to the UK over the next three winters.
Britain is not dependent on gas imports from Russia, making it less vulnerable to the current supply shock, and can export gas to Europe via pipeline.
In addition to concerns about Nord Stream’s flows, the supply of liquefied natural gas (LNG) is expected to decline in the coming months. Damage from a fire last week at a US LNG export plant in Texas operated by Freeport LNG will keep it fully offline through September, with only partial operation through the end of the year.
The facility accounts for about 20% of US LNG exports and has been a key supplier to European buyers looking for alternatives to Russian gas.
“There is a risk of further delays, in our opinion, as the plant restart is subject to regulatory approval and there are two ongoing investigations into the cause of the LNG leak and the resulting excessive emissions of various pollutants, which may require assessments of stringent security,” analysts at investment bank Jefferies said.
Source: CNN Brasil
