Page 5 - FSUOGM Week 25 2022

FSUOGM COMMENTARY FSUOGM

gy mix than that of Germany. Whereas gas ac- which are currently at 56% capacity.
counts for only 27% of the German energy mix, France is less exposed to a Russian supply cut-
it amounts to 41% of the Italian one. off from Germany and Italy, given that it takes
Italy’s Eni reported on June 15 that Gazprom only 17% of its gas from Gazprom, and gas only
had cut gas flow by 15%, without providing an accounts for 16% of the French energy mix. How-
explanation. The company then said on June 17 ever, continuing technical problems at the coun-
that the reduction had increased to 50%. Like try’s fleet of nuclear power plants (NPPs) represent
their German counterparts, Italian officials have a risk. And a cut-off in Russian supply to any Euro-
rejected Gazprom’s “technical reasons” as an pean country hurts most others, by further driv-
excuse. ing up prices and diverting volumes. Russia has
“Both Germany and us, and others, believe already cut off gas to Bulgaria, Denmark, Finland,
these are lies,” Italian Prime Minister Mario Poland and the Netherlands, for their failure to
Draghi said at the press conference in Kyiv. “In comply with its rubles-for-gas decree.
reality they are making a political use of gas
like they are using grain for political use.” Italy Who’s next
may declare a heightened “state of alert” next Tensions are likely to remain high as more dis-
week if Russia continues to scale back supply, ruptions are slated for the coming weeks. Gaz-
Reuters reported on June 16. Such a declara- prom announced on June 18 that it was shut-
tion would trigger a range of measures to curb ting down TurkStream, which supplies gas to
gas consumption, including rationing supplies southern Europe, between June 21 and 28 for
to selected industrial users under existing con- more maintenance.
tracts, increasing generation at coal-fired plants, “Gas transmission via both strings of the
and tapping additional gas from other suppliers TurkStream gas pipeline will be suspended from
where possible. A meeting of Italy’s emergency June 21 to 28, 2022, in connection with planed
technical committee for gas will take place on preventative maintenance,” Gazprom said in a
either June 21 or 21 to review the situation, statement. “The suspension of gas transmission
according to Reuters. was agreed in advance by all stakeholders.”
Italy’s gas storage facilities are currently at TurkStream carries 31.5bn cubic metres of
under 55% capacity. gas a year to the southern European states, land-
Meanwhile, French gas transmission system ing in Turkey and sent on through an expanding
operator GRTgaz reported on June 17 that gas pipeline network.
flow from Germany to France had ceased two Likewise, Gazprom will shut Nord Stream
days earlier, citing a reduction in Russian vol- 1 one down for a week at the end of July for its
umes. GRTgaz said it did not expect any prob- annual scheduled maintenance that will also
lems meeting French summer demand for gas, restrict flows to Europe. While this happens
but stressed the need for all shippers and stake- every year, in the current climate the shutdown
holders to prioritise the refilling of storage sites, will only fuel further tensions. ™

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