Due to the need for maintenance, Russia has fully stopped supplying gas to Europe through Nord Stream 1. The Nord Stream 1 pipeline will be restricted for the next three days, according to Russian state-owned oil company Gazprom.
Russia Shuts Done Nord Stream 1
Russian pipeline gas shipments have already sharply dropped. It rejects the use of energy resources as a military instrument against Western nations. The 1,200 km (745 mi) Nord Stream 1 pipeline travels from the Russian coast at St. Petersburg to northeastern Germany under the Baltic Sea. It began operating in 2011 and can transport 170 million cubic meters of gas every day from Russia to Germany.
The Nord Stream, according to Russia, was shut down for 10 days in July for repair, and as of late, it has been operating at roughly 20% of its capacity because of what Russia claims to be broken equipment. Germany’s network regulator’s president has claimed that the country will be able to manage if Russia resumes delivery in the coming days.
Klaus Mueller is certain that they can handle it. On Saturday, he predicts that Russia will recover to 20%, but nobody can be sure. Authorities in Europe are worried that Russia would prolong the outage to raise gas prices, which have already increased significantly in the past year.
Impact on the Market
Regrettably, it was not anticipated that today’s announcement would immediately affect prices. The primary natural gas price in the UK was down more than 15% as of 14:00 BST on Wednesday. The sudden surge raises fears of a crisis in living costs throughout the winter, which could force governments to spend billions of dollars to lighten the burden.
On Tuesday, Agnes Pannier-Runacher, France’s minister for energy transition, accused Russia of using gas as a weapon of war. After Gazprom declared it would discontinue providing gas to the French energy company Engie, she made her remarks.
The claims have been refuted by the spokesperson for Russian President Vladimir Putin, who asserts that the outages are the result of Western sanctions that have harmed Russian infrastructure. Without going into detail about the issues, he highlighted that only “technical constraints” brought on by the sanctions prevented Russia from supplying gas through the pipeline.
Earlier Threats to Europe’s Gas Supply
According to the sources, the Russian energy giant Gazprom claims that Western sanctions make it hard to retrieve a turbine that is essential for supplying gas to Europe. After being serviced in Canada, the 12 m (40 foot) turbine is stuck in Germany.
Berlin maintains that the equipment is unaffected by the restrictions and charges Russia with breaking its obligations for political objectives. Gas shipments from Gazprom to Europe had significantly decreased. The crucial Nord Stream 1 pipeline, which runs from Russia to Germany, is operating at 20% of its capacity.
Troubles Faced by Europe
Russian gas has historically been a major source of energy for Europe, and particularly Germany. The wholesale price of gas in Europe increased by 10% the day after Russia declared its intention to limit supply in July.
Gas prices have increased by over 450% since this time last year. The market is currently so tight, according to Carole Nakhle, CEO of analysts Crystol Energy, that any interruption in supply results in further increases in gas prices. This might slow down European economies and hasten the descent into recession.
About the recent Controversy
The most recent dispute was a turbine that was refurbished in Canada before being shipped to Germany. Russia refused to accept the turbine back, claiming it was subject to Western sanctions.
Germany disputes this, though. Robert Habeck, the economy minister, stated earlier this month that the Nord Stream was completely functioning and that there were no technical problems, unlike what Russia claimed. Ursula von der Leyen, president of the EU Commission, declared earlier this week that the energy markets need to be regulated since they are no longer functional.
She asserted that they require a new electrical market structure that works and restores our equilibrium. The €10 billion (£8.4 billion) Nord Stream 2 pipeline, which runs parallel to its namesake, was supported by Germany before the crisis but its construction was halted after Russia launched soldiers into Ukraine in February.
The BBC uncovered last week that Russia has been burning off almost $10 million (£8.4 million) in gas every day at a plant close to the Finnish border.
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