Page 6 - EurOil Week 24 2022

EurOil PIPELINES & TRANSPORT EurOil

The Nord Stream
pipeline system.
Source: Gazprom.

Russia announces it will slash gas flow

via Nord Stream 1 by 60%

RUSSIA RUSSIA’S Gazprom has announced it is slashing buyers in Bulgaria, Denmark, Finland, Ger-
gas flow via the Nord Stream 1 pipeline by 60%, many, Poland and the Netherlands, in most cases
blaming Siemens’ failure to return compressor because those customers refused to comply with
units on time that had been sent off for repair, the Kremlin’s decree that requires them to open
as well as other technical difficulties at the Por- accounts at Gazprombank, where their Euro and
tovaya compressor station. US dollar-denominated payments for gas can be
Gazprom reported on June 14 it was reduc- converted into rubles for transfer to Gazprom.
ing gas supply via Nord Stream 1 to 100mn cubic Germany has slammed the latest curtailment
metres per day, down from a previous plan of 167 in its gas supply as a political move, despite Gaz-
mcm per day. It also said that Russian technical prom’s claim that technical problems are the
watchdog Rostekhnadzor had also drawn atten- cause.
tion to other concerns at the facility, ordering a “Russia’s reason [for reducing gas supplies]
temporary halt for some equipment, pointing to is just a pretext,” German Vice-Chancellor Rob-
Western sanctions as the cause. As a result, only ert Habeck said. “Their strategy is obviously to
three gas-pumping units remain in operation, it unsettle [people] and drive up prices.”
said. Restrictions on Nord Stream 1’s capacity will
The company followed this up with an put pressure on the other routes that Russia uses
announcement on June 15 that it was curtail- to supply its gas to Europe. Yamal-Europe, which
ing output at Portovaya further to 67 mcm per typically pumps Siberian gas to Poland and Ger-
day, after taking additional Siemens equipment many, has been flowing mostly in reverse since
offline. December, and Poland has also terminated its
Gazprom’s announcements are ill-timed for agreement with Russia on transiting gas via the
European gas buyers, coinciding with a slump pipeline.
in US LNG supplies to Europe as a result of an Meanwhile, Kyiv in May terminated gas flow
explosion at the 15mn tonne per year (tpy) Free- entering Ukraine at the Sokhranivka gas meter-
port LNG in Texas on June 8. It is expected to ing station, located on territory held by Russian
take six months for operations at the facility to forces. The Sokhranivka station typically handles
be restored. about a third of Russian gas transit via Ukraine,
Meanwhile, Italy’s Eni also reported on June and while the Ukrainian gas grid operator has
15 that Gazprom had cut gas flow by 15%, with- said the route’s closure will not affect overall tran-
out providing an explanation. sit volumes, Gazprom has claimed the opposite.
Gazprom has already cut off supply to gas This leaves TurkStream, the Russian-owned

P6 www. NEWSBASE .com Week 24 16•June•2022