Europe

Europe’s gas supply crisis expands after Russia imposes sanctions

After Moscow imposed sanctions on the European subsidiary of state-owned Gazprom and Ukraine shut down gas transportation routes and pushed up prices, pressure on Europe to secure alternative gas supplies increased on Thursday.

Russia imposed sanctions late Wednesday, primarily on Gazprom Germania, a European subsidiary of Gazprom.

It also imposed sanctions on the owners of the Polish part of the Yamal-Europe pipeline, which carries Russian gas to Europe.

Kremlin spokesman Dmitry Peskov said he had nothing to do with the affected companies and could not participate in Russia’s gas supply.

The entities on the list of affected companies on the Kremlin’s website are mainly based in countries that have imposed sanctions on Russia in response to invasion of Ukraine, most of which are members of the European Union. ..

Germany, Russia’s top European client, said some subsidiaries of Gazprom Germania did not receive gas due to sanctions, but are looking for alternatives.

“Gazprom and its subsidiary bodies are affected,” Habeck told the House of Representatives. “This means that some subsidiaries no longer get gas from Russia, but the market offers alternatives.”

This list includes Germany’s largest gas storage facility in Rehden, Lower Saxony. With a capacity of 4 billion cubic meters, it is operated by Astora and Wingas, a trader who supplies industry and local utilities.

Wingas has stated that it will continue to operate, but it may be exposed to shortages. Rival Unipers UN01.DE, VNG EBKG.DE, or RWE RWEG.DE have the potential to be a potential source of supply to the market. The gas flow continues from Russia via the Nord Stream 1 pipeline to Germany.

EuRoPolGaz, owner of the Polish section of the Yamal pipeline, is profiting from the transportation of gas in Russia. It is jointly owned by Polish gas company PGNiG and Gazprom.

Poland, along with Bulgaria, was cut off from Russia’s supply last month because it refused to comply with the new payment mechanism, but could use the Yamal pipeline’s backflow to transport gas from Germany.

According to data from gascade pipeline operators, the exit to Poland at the Mallnow weighing point on the German border was 9,734,151 kWh (kWh / h) per hour on Thursday, down from about 10,400,000 kWh / h the day before. ..

Last year, EU countries obtained about 155 billion cubic meters of gas from Russia.

Transit

Dutch gas prices at the European benchmark TTF hub rose about 20% on Thursday morning.

Germany’s Harbeck said Russia’s measures appear to be designed to boost prices, but the expected 3% decline in Russia’s gas supply can be offset by the market, albeit at a higher cost. He said he could.Read the full text

Wholesale gas prices in Europe have skyrocketed over the past year, putting a strain on homes and businesses.

Germany’s gas storage is about 40%, but it is still low throughout the year and needs to be stocked in the summer in preparation for the winter.

Moscow announced sanctions the day after Ukraine suspended its main gas transport route to Europe, accusing it of interfering with the occupation of Russian troops. Exports via Ukraine were suspended for the first time since the invasion.

A transit point closed by Ukraine usually handles about 8% of Russia’s gas flow to Europe, and Ukraine has proposed that the flow can be redirected to another transit point, Suja.

Data from a Ukrainian gas transmission operator show that the flow through Suja on Thursday morning dropped from about 70 mcm the day before to 53 million cubic meters (mcm) per day.

But Ukraine’s outage does not present an imminent gas supply problem, the European Commission said.

Meanwhile, there is still confusion among EU gas companies about the payment scheme that Moscow proclaimed in March, which the European Commission said it violated EU sanctions.

RWERWEG.DE, Germany’s top electricity producer, will soon reveal whether Berlin will be able to pay for Russian gas under the new scheme proposed by Moscow as the deadline approaches the end of the month. I’m expecting that.

Russia’s request to make future payments for the most valuable fossil fuels in the ruble was rejected by most European gas buyers for details on the process of opening an account at Gazprombank.

This is especially against potential supply disruptions if buyers refuse to meet the guidelines to avoid sanctions violations that could have widespread consequences in Europe and Germany, which are heavily dependent on Russian gas. It is fueling concerns.

https://cyprus-mail.com/2022/05/12/europes-gas-supply-crisis-grows-after-russia-imposes-sanctions/ Europe’s gas supply crisis expands after Russia imposes sanctions

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