Nord Stream 1 Maintenance: Will Gazprom Supply More Gas Through Ukraine?

Status: 07/12/2022 1:49 p.m

According to its own statements, the Russian energy company Gazprom is supplying a little more gas via Ukraine to Western Europe because of the maintenance of Nord Stream 1. According to the Federal Network Agency, however, significantly larger deliveries would be possible.

According to its own statements, the Russian energy company Gazprom is supplying more gas to Europe via Ukraine. According to the Russian state-owned company, the volume delivered via the Sudsha entry point today is 41.3 million cubic meters after 39.4 million on Monday. An application to also pump gas via the Sochranovka entry point was rejected by Ukraine.

However, the Federal Network Agency is not convinced by the quantities supplied. The authority accuses the government in Moscow of not using alternative delivery routes for political reasons. “No more gas has flowed through Nord Stream since Monday morning. Russia is now only supplying Germany via the Transgas pipeline through Ukraine,” says the President of the Federal Network Agency, Klaus Müller, the editorial network Germany (RND). The government in Moscow can increase delivery volumes through Ukraine at any time in order to meet its contractual obligations. “But Vladimir Putin obviously lacks the political will.”

“I have no secret information”

However, Russia will have to show its colors within the next two weeks. “If the gas turbine serviced in Canada is reinstalled by the end of the Nord Stream maintenance on July 21, Russia would no longer have an argument to continue curbing gas supplies.” Since Monday, nothing has been delivered via the last most important route for Russian natural gas, Nord Stream 1, to Germany. For a total of ten days, no gas is to be transported through the pipeline to Germany. In Germany there is concern that the pipeline will not be put back into operation after the maintenance work and that gas will run out in winter.

Müller’s criticism is understandable. Because what is also possible via the Transgas pipeline has already been shown in the current year. At the end of March/beginning of April, Russia delivered 707 million cubic meters of natural gas to Europe via the pipeline within a week – more than 100 million cubic meters per day, two and a half times today’s volume.

Federal Minister of Economics Robert Habeck is hoping for further gas deliveries from Russia after the end of maintenance work on the Baltic Sea pipeline Nord Stream 1. “I have no secret information either way,” he said last night daily topics. “It’s possible. There’s also a chance that it won’t happen. We’ll have to wait and see.”

The filling is still going up

Despite the recent significant drop in deliveries, gas storage facilities in Germany have continued to be filled at a good pace. It is possible that increased LNG deliveries to Europe due to the record prices and also more economical use of the expensive raw material by natural gas customers are already having an impact. On average over the past week, the level rose by an average of 0.3 percentage points per day to 64.38 percent on Sunday, when gas flow through Nord Stream 1 had not yet completely stopped. At an unchanged pace, the targets of the Gas Storage Act of 80 percent by October 1st and 90 percent by November 1st could easily be achieved. However, it is not yet clear to what extent the growth in memory filling will slow down for the time being.

At the most important European gas trading point TTF, prices rose again today after a short phase of weakness. The natural gas price for the next six months was in the range of 170 to 180 euros per megawatt hour. That’s the equivalent of 17 to 18 cents per kilowatt hour. However, in addition to the pure gas costs, there is also the profit margin of the energy supplier selected by the customer and a number of government-mandated surcharges, which together can amount to more than ten cents per kilowatt hour.

Scholz relies on European solidarity

Chancellor Olaf Scholz is confident that the EU countries will show solidarity if there is a gas shortage in autumn or winter. “Of course we have to show solidarity in Europe,” he said in Berlin after a meeting with Slovenian Prime Minister Robert Golob. “I’m sure we can do that,” he added.

Golob had previously emphasized that small EU countries like Slovenia could be dependent on the help. No country can deal with an energy crisis on its own, solutions can only be found within the EU. EU Internal Market Commissioner Thierry Breton had previously warned that the 27 EU countries should not, as in the Corona pandemic, develop national reflexes in an emergency that affects everyone.

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