Gazprom has cut back natural gas flows to Europe by another 20%, citing further repairs to the Nord Stream 1 pipeline.
The Russian-owned energy company announced on Monday it would slash daily natural gas capacity en route to Germany to a mere 33 million cubic meters come Wednesday, citing necessary repairs to a second turbine. Nord Stream 1 was reopened to 40% capacity last week after the conclusion of a 10-day maintenance period, while the German government went as far as to assure that technical reasons would not lead to additional gas cutbacks.
“Russia is playing a strategic game here. Fluctuating already low flows is better than a full cut-off, as it manipulates the market and optimizes geopolitical impact,” said German economy minister Robert Habeck as cited by ABC News. Russia has already slashed supplies to several EU non-friendly EU countries, prompting the European Commission to announce voluntary consumption reductions in order to avert potential gas rationing come the winter months.
Back in June, Gazprom reduced output by 60% over alleged technical issues related to a turbine that was sent to Canada for repairs at Siemens Energy. The Russian energy giant complained that sanctions were preventing the part from being returned to Russia, eventually prompting the Canadian government to issue a revocable permit allowing for delivery of the turbine to Germany and then subsequently to the Russian compressor station.
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On Monday, Gazprom brought attention to a second turbine related to the Nord Stream 1 pipeline, which too, is involved in the heated sanctions debate. According to the Russian energy company, British and EU sanctions “remain unresolved” when it comes to scheduled repairs on turbines. However, Germany assured that the original part is not subject to sanctions, while Siemens Energy said that there currently aren’t any “significant complications” aside from pending customs documents necessary for imports into Russia.
Information for this briefing was found via ABC News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
