Gazprom, Russia’s state-owned energy company, strengthens its grip on the continent’s gas supply
On July 25, Reuters reported from Moscow: On Monday, Gazprom (GAZP.MM) announced that supplies to Germany through the Nord Stream 1 pipeline will be reduced to barely 20% of capacity, further tightening the Russian gas grip on Europe.
Russian legislation prohibits coverage of Russian military activities in Ukraine, and as a result, this material was created there.
In order to comply with a directive from an industry watchdog, Gazprom has announced that it would restrict its gas supply to 33 million cubic metres per day starting at 0400 GMT on Wednesday – a 50 percent drop from the present, already lowered level.
As the West and Russia trade economic blows in response to what Moscow calls its special military operation in Ukraine, Germany said it saw no technical basis for the latest cut.
In response to the latest setback for Nord Stream 1, the Dutch front-month gas contract rose 9.95 percent. The 55 billion cubic meter-per-year pipeline is Russia’s only route to Europe’s gas market.
The EU has often accused Russia of using energy blackmail, while the Kremlin claims that the gaps are due to maintenance concerns and the impact of sanctions from the West..
A Russian gas cutoff this winter, according to European politicians, could send the country’s economy spiralling into recession and drive up gas prices for households already struggling with rising food and energy costs.
Russia’s largest gas importer, Uniper (UN01.DE), had to be rescued by Germany last week, with a $15 billion bailout. read on for more information
PUTIN’S COLD CALL
He warned the West earlier this month that continuing sanctions might lead to catastrophic increases in energy prices for consumers all across the globe, which was a hint at the current decrease. to read more
Already in June, Russia reduced Nord Stream 1 flows by 40%, blaming the delay on the delayed restoration to Siemens Energy (ENR1n.DE) service in Canada, an explanation Germany dismissed as fictitious.
It then shut down Nord Stream 1 for ten days this month for yearly maintenance, resuming it on Thursday with just 40% of its regular capacity.
When it returns to Russia, that first turbine’s service is still up in the air due to paperwork and inconsistent explanations.
Although Gazprom received documentation from Siemens Energy (ENR1n.DE) and Canada, they “do not eliminate previously recognised dangers and raise more doubts,” it said in a statement on Monday.
According to the report, EU and UK sanctions are still an issue, and their resolution is crucial to getting the engine to Russia and getting the compressor station’s other gas turbine engines up and running as quickly as possible.
As soon as Siemens Energy announced they were ready to start transporting its repaired turbine to Russia, Gazprom had to take the initiative.
“Siemens Energy received all of the required paperwork for the turbine’s shipment to Russia from the German government early last week. As Gazprom is well known, “it was reported.
“However, Russia’s customs paperwork is still lacking. That’s something that Gazprom, as the client, is expected to deliver.”
The German business claimed it found no connection between the turbine problem and Gazprom’s gas cutbacks. A request for comment from Xinhua was not immediately returned.
Kremlin spokeswoman Maria Zakharova said earlier that Moscow did not want a total suspension of Russian gas shipments to Europe, which is under pressure to fill its underground storage facilities ahead of the high winter demand season.
Because of this, the European Union has proposed to its member states that they reduce their gas use by 15% from August to March, compared to the same time in prior years.
Second only to Saudi Arabia, Russia is the second-largest producer and exporter of oil and natural gas in the world. Russia supplies Europe with 40% of its gas and 30% of its oil.
