Do you want to know about European markets? It's in your inbox before the opening. If you sign up, you'll get notifications.
Europe is still on edge about the possibility of gas supply disruptions from Russia, even after the restart of the crucialNord Stream line.
After being stuck in Canada due to sanctions, a turbine that helps pump gas into the link is held up in Germany. If the part isn't returned to Russia in the next few days, President Putin warns that shipments through the main line could be in danger.
Russian gas supplies could be cut further, or they could be stopped completely. EU nations are racing to build their inventories as they navigate a historic energy crisis, caused by Russia's war in Ukraine, that could cause severe economic damage as it ripples across the continent.
As winter approaches, there will be more disruptions as Russia tries to increase political and economic pressure on Europe. What Russia will do is not clear.
Since it came back from maintenance on Thursday, the flow rate has been roughly the same as before.
If the turbine delays aren't fixed, the level could drop to 20%. He said that one of the two turbines at the compressor station in Russia needs to be fixed this month. Flows will fall unless the replacement component arrives in Russia soon.
It wasn't immediately clear what the status of the part was. According to a person familiar with the matter, the replacement turbine was stuck in Germany because Russia hadn't given the necessary paperwork.
The Russian company said that it has no obligations to the German company in order to get the component.
Simone Tagliapietra is a senior fellow at think tank Bruegel. It's better to keep low flows going than it is to cut them off. It makes Europe less determined to reduce gas demand. Europe must not fall into this trap.
The Kremlin categorically denies that it is using energy as a weapon.
Dutch gas futures rose for a third day in a row on Friday.
Moscow is getting ready for one of its notoriously harsh winters. Russian Energy Minister Nikolai Shulginov told Putin on Thursday that the nation's gas storage levels are already 81% of what's needed.
He said during a meeting broadcast on state television that their partners in unfriendly states are expecting a very complicated season. Based on our plans and timelines, we are functioning normally.
Russia's gas output could be affected if there are less export outlets for its fuel. As of July, Gazprom's production was down about 10% from a year ago.
Russia is limiting gas flows to Europe via Ukraine. Extra capacity to ship fuel along the route was not booked at the monthly auction.
Domestic storage injections and production shut-ins are being used for Russian gas-export curtailments.
The bank's head of natural gas research said in an interview that Moscow had the option to re-route flows through Ukraine.
She said that the conditions imposed by Russia suggest that this is more than just a turbine. It's likely a political and economic decision.
Liquefied natural gas, which has been flowing at record volumes this year, has alleviated some of the uncertainty over shipments to Europe.
As a result of sufficient inventories and Covid-related lock-ups in China, Asian demand has been subdued.
As a result of the Chinese activity picking up, there may be less available cargo for Europe.
Elena and Eyk Henning assisted.
All Rights Reserved © 2024
