A machine used to supply Russian natural gas to Germany has been hampered by Canadian sanctions against Moscow, causing a sharp drop in flows on a key Russian pipeline and contributing to a jump in European natural gas prices on Tuesday.
Gazprom, Russia’s gas monopoly, said on Twitter on Tuesday that it was reducing the amount of gas it sends to Germany via the Nord Stream pipeline by about 40 percent because a turbine sent for repairs was not returned “on time.” He said he could not provide the amount of gas that is usually sent to Germany without the machine.
Siemens Energy, the Munich-based turbine maker, has largely confirmed Gazprom’s account. A statement said it had overhauled the turbine at a specialized facility in Montreal, but that it was “currently impossible” to return it to Gazprom “due to sanctions imposed by Canada.”
Siemens Energy said it had informed the Canadian and German governments of the situation and was “working on a viable solution”.
The crash helped raise natural gas futures prices by 16 percent on the Dutch TTF to about 97 euros per megawatt-hour. This is less than half of the highest value reached in March, when fears of a disruption by Moscow were strong, but still about five times higher than a year ago.
Adding additional pressure to raise prices, a major Texas liquefied natural gas export facility called Freeport LNG said Tuesday it would take 90 days, much longer than originally expected, before even returning to partial operations. after a fire last Wednesday. In recent months, Freeport LNG has been a major exporter of natural gas to Europe and elsewhere, helping to ease the supply crisis.
The two events do not seem to pose a small imminent threat that Germany or Europe will run out of fuel any time soon. Summer is a season of relatively low demand for gas used for heating, and Europe is rapidly accumulating its reserves in preparation for next winter.
“There are no immediate supply problems,” said Henning Gloystein, director of energy, climate and resources at Eurasia Group, a political risk firm.
And in a tweet on Tuesday, the German energy ministry said security of natural gas supply was “guaranteed unchanged”.
However, as the war in Ukraine continues and Russia is still a key gas supplier to Europe, any disruption is quickly turning into market turbulence.
Encouraged by the European Union, Europe is rapidly accumulating its gas reserves, hoping to overcome the fear of shortages or interruptions by Russia that led to astronomical levels since last summer.
Gas storage facilities in the European Union are about 52 percent full, 10 percent better than a year ago. In recent weeks, Europe has been importing surplus gas through pipelines from Russia and elsewhere, as well as supplies of liquefied natural gas from the United States and other suppliers.
Now, Mr Gloystein said, the Texas plant fire and Gazprom’s Nord Stream action raise doubts about whether rapid replenishment will continue, leading to new concerns about “more serious price spikes or even supply shortages.” next winter. “
Christopher F. Schuetze contributed to the reports.
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