Gas price fell despite Nord Stream 1 shutdown

Gas price fell despite Nord Stream 1 shutdown
Gas price fell despite Nord Stream 1 shutdown

The price of gas in Europe fell today, although there is no gas flowing through Nord Stream 1, and there are no prospects for this to happen soon, Reuters reported. On August 31, the facility shut down for scheduled maintenance, but supplies never resumed on September 3, as originally scheduled. Subsequently, Gazprom announced that the launch of the gas pipeline was postponed indefinitely.

In the Netherlands, the value of the monthly contract decreased by 27.5 euros to 218 euros per megawatt hour. Futures for November delivery fell 24 euros to 234 euros per megawatt hour.

“This development is closer to reality and reflects the availability of gas, as the storages in Europe are almost completely filled and the risks related to Russian supplies are decreasing,” said an analyst at “Engie EnergyScan”.

Europe filled its storage facilities almost two months ahead of schedule, and they are currently 82% full on average, according to Gas Infrastructure Europe. In Germany, they are 86% filled.

Rating agency Fitch reported that the shutdown of Nord Stream 1 occurred four months earlier than it predicted, but Europe was prepared for it. Plans to find alternative supplies, combined with blue fuel savings of up to 15% compared to the previous year, should help Europe avoid acute shortages, Fitch said.

“Gazprom”: The resumption of “Nord Stream” depends on “Siemens”

Russia’s largest gas pipeline to Europe will not resume supplying natural gas until Siemens Energy repairs the damaged equipment, Gazprom Deputy CEO Vitaly Markelov told Reuters.

On Friday, Gazprom ( GAZP.MM ) said the Nord Stream 1 gas pipeline because there was an engine oil leak in a turbine at a compressor station, leading to a sharp rise in wholesale gas prices.

Asked when Nord Stream 1 will start pumping gas again, Markelov told Reuters on the sidelines of the Eastern Economic Forum in the Russian Pacific port of Vladivostok: “You should ask Siemens. They need to repair the equipment first.”

Siemens Energy said that they have not received an order from Gazprom to carry out maintenance work on the turbine with a suspected oil leak from the engine at the moment, but they are on standby.

The Munich, Germany-based company said it did not understand how Gazprom presented the situation. She stated that the leakage of engine oil from the last operating turbine at the Portovaya compressor station was not a reason for the closure of the pipeline.

“We cannot understand this new submission based on the information that was provided to us over the weekend,” Siemens Energy said in a written statement. “It is our assessment that the finding reported to us does not constitute a technical reason to shut down operations. Such leaks do not normally affect the operation of the turbine and can be sealed on site,” the company added.

China will pay for Russian gas in rubles and yuan instead of dollars

Russian energy giant Gazprom has announced that China will start paying for Russian gas in rubles and yuan instead of US dollars, as Moscow seeks closer ties with Beijing in the wake of Western sanctions against Ukraine.

“A transition was made to making payments for the supply of Russian gas to China in the national currencies of the countries – the ruble and the yuan,” said the statement of “Gazprom”, quoted by AFP.

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Tags: Gas price fell Nord Stream shutdown