Dwell information updates: Gazprom declares three-day Nord Stream 1 closure at finish of August

© Reuters

Gazprom said it will shut down the Nord Stream 1 pipeline, which supplies gasoline to Europe via the Baltic Sea, by the end of August, and cut additional gasoline flow to Europe as vitality costs rise and the continent seeks supplies after Russia invades. Ukraine.

Russia’s state petrol monopoly said Friday it could close the only working compressor station on Nord Stream 1 in Portovaya, close to St Petersburg, from August 31 to September 2.

Gazprom said it could then resume supplying Europe with up to 33 million cubic meters of petrol per day, about 20 percent of NS1’s capacity, or about the same amount it has supplied via the pipeline to Germany in recent weeks.

The Russian state-backed petrol monopoly cut road capacity for the first time in June. Fuel costs in Europe have more than doubled since then, rising more than 6 percent on Friday to €256 per megawatt-hour, the best closing value on report.

Gazprom can ship up to 167 million cubic meters per day through the pipeline, but has throttled deliveries in recent months in a dispute over sanctions. The company has claimed it is unable to supply gasoline in common volumes due to delays in repairing and returning generators manufactured by Germany’s Siemens Power.

European leaders and vitality companies have said there is no technical situation to stop Gazprom from supplying additional petrol and state that Russia is deliberately restricting supplies for political reasons.

In a press release, Gazprom stated that the repairs were imposed under the contract with Siemens Power and that the German company’s specialists would participate in the repairs.

Siemens Power declined to comment.

“This could be a vivid example of Putin’s hybrid vitality struggle in opposition to the EU,” said Sergiy Makogon, chief government of Ukraine’s state-owned gasoline transmission companies. “Ukraine and Poland have untapped throughput capacities, which can be used to fully offset flows through Nord Stream 1,” he continued.

Yuriy Vitrenko, CEO of Ukraine’s state-owned gasoline company Naftogaz, said there are “no indicators that Gazprom would offset” by pumping additional gasoline through Ukraine’s massive gasoline transport pipeline once a serious route to European markets is available.

“The aim could be to pressure Germany to relax and even allow sanctions.” [Nord Stream 2]” added Vitrenko.

“The prospect of Gazprom Nord shutting down Stream 1 for three days is hardly going to shock the market,” said ICIS analyst Tom Marzec-Manser. “Fuel costs rose at the end of the buy-and-sale day when maintenance was introduced and will simply rise extra Monday as consumers assess whether they actually envision the pipe going back into service, as acknowledged by the Russian provider.”

Further coverage by Roman Olearchyk in Kiev, Martin Arnold in Frankfurt and David Sheppard in London

Be the first to comment

Leave a Reply

Your email address will not be published.