Russia has drastically reduced gas supplies to Europe in recent weeks.
Odd Andersen | AFP | Getty Images
Russia’s state energy giant Gazprom halted gas flow to Europe via a major pipeline on Wednesday, citing maintenance work on its only remaining compressor.
Gas flows via Nord Stream 1, which runs from Russia to Germany via the Baltic Sea, are expected to be suspended from August 31 to September 3.
The shutdown had been announced in advance, and Gazprom announced in mid-August that the gas flow would be interrupted for three days for maintenance work.
Gazprom earlier said gas transmission would resume at a rate of 33 million cubic meters per day when maintenance work was completed “assuming no disruptions are detected.”
The temporary halt to supplies reflects a deepening gas dispute between Russia and the European Union and underscores both the risk of a recession and a winter shortage.
Russia has drastically reduced gas supplies to Europe in recent weeks, with gas flows via the Nord Stream 1 pipeline remaining at just 20% of the agreed volume.
Moscow has previously blamed faulty and delayed equipment for the sharp drop in gas supplies.
But Germany sees the supply cut as a political maneuver aimed at sowing uncertainty across the bloc and pushing up energy prices amid the Kremlin’s attack on Ukraine.
European policy makers are currently scrambling to secure gas supplies at underground facilities in order to have enough fuel to keep homes warm in the colder months.
These gas injections are developing faster than expected.
‘full bunker mode’
“Europe is in full bunker mode and is not taking any chances as Russian supplies head into the winter,” Wei Xiong, a senior analyst at energy consultancy Rystad Energy, said in a research note.
The latest data from industry group Gas Infrastructure Europe shows that total storage in the EU is on average over 80% full, while underground storage in Germany is almost 84% full.
Rystad’s Xiong said gas storage facilities in Europe were only 66% full over the same period in 2021, “although the cost would have been significantly lower.”
Until recently, Germany bought more than half of its gas from Russia. And the government is now struggling to secure winter gas supplies amid fears Moscow may soon turn off taps entirely.
Gas storage capacity was planned to reach 75% by September 1, with the next federally mandated targets set at 85% by October 1 and 95% by November 1.
“The early injections relieve concerns about Russian supply disruptions,” Xiong said.
“However, the risk to Europe’s winter stocks remains – with low transmissions from Russia and intensified maintenance on Nord Stream 1, storage levels could be vulnerable.”