“The situation is tense and a further deterioration of the situation cannot be ruled out,” the German Network Agency said on Saturday. “However, gas supply in Germany is stable at the moment. Security of supply in Germany continues to be guaranteed at present.”
Germany, which for decades has built up a dependency on cheap Russian gas, is trying to retool its energy policy in weeks to protect its powerhouse economy. It’s considering keeping nuclear plants running in a dramatic U-turn, and is working on getting LNG facilities up and running. Storage is now at 85%.
As Moscow’s efforts to squeeze Ukraine’s European allies become increasingly clear, economy minister Robert Habeck this week declared the country can’t rely on Russia for gas.
“We have already seen Russia’s unreliability in the past few weeks and accordingly we have unwaveringly and consistently continued our measures to strengthen independence from Russian energy imports,” the Economy Ministry said on Friday.
Gazprom said a leak of oil was detected at a gas turbine that helps pump gas into the link, and there’s no indication of how long it may take to repair. Similar oil leaks were previously detected at other turbines, which are out of action, and “complete elimination of oil leakage on these turbines is possible only in the conditions of a specialised repair company,” Gazprom said.
Gazprom said Siemens had confirmed the leak and needed to make repairs away from the site. But Siemens Energy said the leaks cited by Gazprom were not a reason to stop gas flows.
The complete halt of Nord Stream, which runs under the Baltic Sea to Germany, would leave two major routes supplying gas to the EU: one via Ukraine and TurkStream through the Black Sea. Flows through Ukraine have also been curbed, while TurkStream to the south of Europe was operating without disruptions.
The bloc has been seeking to prepare for the risk of a Russian gas cut-off by securing alternative supplies such as liquefied natural gas from the US. But it’s still a work in progress.
“Supply is hard to come by and it becomes harder and harder to replace every bit of gas that doesn’t come from Russia. When weather turns cold and demand starts to pick up in the winter in Europe and Asia there’s only so much LNG out there that Europe can import to replace Russian gas,” said Jacob Mandel, senior associate for commodities at Aurora Energy Research.
More stories like this are available on bloomberg.com
Europe’s energy crisis deepens after Russia keeps pipeline shut
Image: Bloomberg
Europe has been plunged deeper into crisis as Russia’s Gazprom PJSC again halted its key gas pipeline indefinitely, a move decried by European politicians as an attempt to use energy as a weapon.
Hours after the Group of Seven leaders agreed to implement a price cap on Russian oil, Gazprom reversed its plan to resume flows through the Nord Stream pipeline. It was meant to reopen on Saturday after maintenance, but the company said a fault had been discovered.
Europe’s politicians have been bracing for the prospect of supply cuts for weeks and scrambling to find ways to cut demand. With industry already shutting down and the euro sliding, the latest move adds to the sense of urgency. As winter approaches, Europe’s resolve to keep backing Ukraine against Russia may be tested.
The EU said Gazprom was acting on “fallacious pretences”. Siemens Energy, which makes the pipeline’s turbines, said what Gazprom had found didn’t justify cutting the gas, a view shared by Germany’s grid agency. There was no comment from the Kremlin.
“Use of gas as a weapon will not change the resolve of the EU,” European Council president Charles Michel said on Twitter. “We will accelerate our path towards energy independence.”
With gas prices four times higher than a year ago, the EU is considering unprecedented interventions in the energy market, including price caps, reducing power demand and windfall taxes on profits.
These discussions had helped push down prices this week.
Europe has been building up its storage in an attempt to prepare for the prospect of a Russian cut-off, and has a buffer for at least part of the winter. Yet the situation could worsen when stockpiles decrease, especially closer to the end of the heating season or if Europe has a severe cold snap.
“The situation is tense and a further deterioration of the situation cannot be ruled out,” the German Network Agency said on Saturday. “However, gas supply in Germany is stable at the moment. Security of supply in Germany continues to be guaranteed at present.”
Germany, which for decades has built up a dependency on cheap Russian gas, is trying to retool its energy policy in weeks to protect its powerhouse economy. It’s considering keeping nuclear plants running in a dramatic U-turn, and is working on getting LNG facilities up and running. Storage is now at 85%.
As Moscow’s efforts to squeeze Ukraine’s European allies become increasingly clear, economy minister Robert Habeck this week declared the country can’t rely on Russia for gas.
“We have already seen Russia’s unreliability in the past few weeks and accordingly we have unwaveringly and consistently continued our measures to strengthen independence from Russian energy imports,” the Economy Ministry said on Friday.
Gazprom said a leak of oil was detected at a gas turbine that helps pump gas into the link, and there’s no indication of how long it may take to repair. Similar oil leaks were previously detected at other turbines, which are out of action, and “complete elimination of oil leakage on these turbines is possible only in the conditions of a specialised repair company,” Gazprom said.
Gazprom said Siemens had confirmed the leak and needed to make repairs away from the site. But Siemens Energy said the leaks cited by Gazprom were not a reason to stop gas flows.
The complete halt of Nord Stream, which runs under the Baltic Sea to Germany, would leave two major routes supplying gas to the EU: one via Ukraine and TurkStream through the Black Sea. Flows through Ukraine have also been curbed, while TurkStream to the south of Europe was operating without disruptions.
The bloc has been seeking to prepare for the risk of a Russian gas cut-off by securing alternative supplies such as liquefied natural gas from the US. But it’s still a work in progress.
“Supply is hard to come by and it becomes harder and harder to replace every bit of gas that doesn’t come from Russia. When weather turns cold and demand starts to pick up in the winter in Europe and Asia there’s only so much LNG out there that Europe can import to replace Russian gas,” said Jacob Mandel, senior associate for commodities at Aurora Energy Research.
More stories like this are available on bloomberg.com
READ MORE:
Russia, West step up energy war as risk of nuclear disaster haunts Ukraine
Ukraine makes push along entire front, Zelensky says, as Russia halts gas
How European agencies bankrolled pre-war Russian gas expansion
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