Page 10 - FSUOGM Week 49 2022

FSUOGM POLICY FSUOGM

RWE follows Uniper in suing Russian

Gazprom over gas supplies

RUSSIA GERMAN utility major RWE has sued Russian it backdated to June 14 2022 when flows first
natural gas giant Gazprom in the Stockholm began to decline.
German energy Arbitration Court for an undisclosed amount However, BCS GM maintains that “it is
companies are suing for violation of a gas contract between two unclear whether that claim will survive arbitra-
Gazprom for lost gas companies, Kommersant daily reported citing tion hearings,” yet still expects the claim from
supply. the German Handelsblatt. RWE to be materially smaller than that of Uni-
RWE follows a similar lawsuit from Uniper per (Handelsblatt claimed that RWE’s contract
that in the same court demanded compensation for Russian gas was only 15 MWh versus almost
of at least €11.6bn for damages caused by the 200 MWh for Uniper).
non-delivery of gas. Analysts surveyed by Vedomosti previously
As followed by bne IntelliNews, Gazprom suggested that Uniper, and now RWE, could
drastically cut supplies to Nord Stream in June, argue that Gazprom only declared force majeure
and the pipeline is now out of action completely, four weeks after supplies had been cut in July
following major leaks that occurred at the pipe- and did not try to reroute gas via an alternative
line in late September. route.
Gazprom originally blamed the slowdown Gazprom would also have to prove that the
and halt in deliveries on Canada’s deliberate pipeline's technical problems were completely
blockage of the delivery of a repaired Siemens beyond its control.
gas turbine for the pipeline. Siemens previously pointed out that it saw no
A lawsuit from RWE that followed “should technical reason for stopping at least some of the
have been expected by the market,” BCS Global operational turbines on the pipeline.
Markets commented, expecting many other The analysts also argued to Vedomosti that
such lawsuits to be filed “given the massive arbitration proceedings of this sort, requiring
financial losses being incurred on Europe’s complex technical expertise, could last any-
energy markets”. where from a year to three years. They also
BCS GM analysts remind that Gazprom remind that Gazprom previously lost a $1.5bn
has been visibly preparing for this event, most claim against PGNiG of Poland and a counter-
notably by declaring a force majeure on the claim against Naftogaz of Ukraine for $2.56bn
halt of Nord Stream flows in summer, which in Stockholm. ™

P10 www. NEWSBASE .com Week 49 12•December•2022