Germany is unsure how much gas Russia will flow through the Nord Stream 1 pipeline following a 10-day maintenance outage that began on Monday, according to Germany’s energy authority.

Governments, markets, and businesses are concerned that the closure may be prolonged due to the conflict in Ukraine, which has generated an economic stalemate between the West and Russia, as well as worries of gas shortages and skyrocketing energy prices. more info

The Nord Stream 1 pipeline carries 55 billion cubic meters (bcm) of gas per year from Russia to Germany over the Baltic Sea. Maintenance will take place from July 11 through July 21.

“As expected, Nord Stream 1 is at zero since this morning,” said Klaus Mueller, chairman of the Bundesnetzagentur.

“What happens at the end of the maintenance, nobody is able to say at this moment. We won’t know any time sooner than a day before its scheduled end.”

Mueller said that gas users had pressed his organization for priority treatment if gas rationing occurs later this year.

Mueller said that the regulator will base allocation choices on their social and economic effect as well as the ramifications for supply systems. Such judgments will be made in October using an IT platform, he noted.

“The Bundesnetzagentur has been confronted with a lot of letters and requests since the beginning of March, in which industry leaders but also entire regions and companies tell us that gas is indispensable for them,” he added.

“I understand this but the scenario is such that we would have too little gas and what we need is proposals where we can save gas.”

Ukraine and its allies accuse Moscow of using bogus pretexts to suffocate gas supply in revenge for sanctions imposed in response to Russia’s invasion of Ukraine, which it defines as a “special military operation”

The Kremlin denies using energy as a political weapon or manipulating gas flows.

Dwindling gas supplies and skyrocketing costs have fueled recession worries in Germany, prompting utility giant Uniper (UN01.DE) to seek government assistance.

Source: Reuters


Please enter your comment!
Please enter your name here