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Page added on June 18, 2022

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Russian gas flows to Europe below demand

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Russian gas flows to Europe fell short of demand on Friday, coinciding with an early heatwave gripping its south and boosting benchmark prices already lifted by concerns the continent may struggle to build up storage in time for winter.

Italy and Slovakia reported receiving less than half of the usual volumes through the Nordstream 1 pipeline, which crosses the Baltic Sea from Russia to Germany and accounts for around 40% of Russian pipeline flows to the European Union.

France said it had received no Russian gas from Germany since June 15. read more Germany’s Uniper reported delivery of 60% less gas from Russia than agreed, but said it was able to make up the shortfall elsewhere.

Germany’s energy regulator described the situation as tense, but that German gas supplies were stable for now. read more

The EU’s reliance on Russian gas and the risk that Moscow could cut supplies in retaliation for economic sanctions imposed after its invasion of Ukraine has been a headache for the bloc, prompting it to build up inventories and seek alternative supplies.

An unusually early heatwave across parts of Spain and France added to the concerns, prompting more gas buying as the demand for electricity needed to power air conditioning spiked.

Wholesale Dutch gas prices, the European benchmark, jumped and prices of power supply contracts also rose across Europe.

Italy’s Eni (ENI.MI) said it would receive only half of the 63 million cubic metres per day it had requested from Russia’s Gazprom (GAZP.MM) on Friday, after experiencing a shortfall the two previous days.

Italian Prime Minister Mario Draghi, who visited Ukraine together with his French and German counterparts on Thursday, accused Moscow of using its gas supplies for political reasons.

But Russia said the pipeline is delivering less gas to Europe because of the slow return of equipment made by Germany’s Siemens Energy (ENR1n.DE) that was sent to Canada for maintenance. Moscow must wait to see how the company and Canada will address the delay, Deputy Prime Minister Alexander Novak said on Friday. read more .

Canada earlier said it was in talks with Germany to resolve the issue. read more

HEAT WAVE DEMAND

Italy may declare a state of alert on gas next week if Russia continues to curb supplies, two government sources said, which would mean reducing gas consumption, rationing gas to industrial users and ramping up coal power generation.

Across Europe, strong liquefied natural gas imports have boosted storage levels. Inventories for the EU as a whole are at 52% of capacity, just below the five-year average and above the 43% seen a year ago, analysts at ING Research said.

If Gazprom restarts Nord Stream flows at full capacity, which is considered unlikely, Europe theoretically could fill storage sites to an 80% target by Nov. 1, Kateryna Filippenko, principal analyst at consultancy Wood Mackenzie, said.

“But if Nord Stream continues flows at 45% capacity, or if it stops altogether, Europe will only be able to refill storage partially – to 69% and 60% respectively,” she said.

“If Gazprom continues restricting flows, in both cases storage will run out throughout winter, unless other demand or supply measures are taken, or Gazprom sends additional gas via available booked capacity via Ukraine, although we believe this is very unlikely,” she added.

With temperatures soaring, Spanish power plants bought more gas to generate electricity on Thursday than on any other day since records began, surpassing a milestone set the day before, transmission system operator Enagas said. read more

Gazprom could increase flows via Ukraine to make up for the Nord Stream shortfall but there has been no sign yet of it doing so. Added to that, flows via the Yamal-Europe pipeline have been flowing eastwards for several months rather than the usual westerly direction to Germany.

Nord Stream 1 is also scheduled for annual maintenance that will halt all flows between July 11 and July 21.

The United States has exported LNG to Europe for months. But a blast last week at an LNG export terminal in Texas will keep it idle until September and it will operate only partially from then until the end of 2022. read more

The facility, which accounts for about 20% of U.S. LNG exports, has been a major supplier to European buyers.

reuters



2 Comments on "Russian gas flows to Europe below demand"

  1. makati1 on Sat, 18th Jun 2022 5:38 pm 

    Not smart to go to war with your life blood supplier, not to mention many other things that keep you alive. Another example of Western stupidity or is it arrogance?

    Even worse is to pick a fight with your banker and supplier of 90% of everything you need and use…China. Every dying empire ends in war.

    If there is a god, she is laughing her ass off and getting ready to wipe the slate clean and start over.

  2. Theedrich on Tue, 28th Jun 2022 3:26 am 

    The 𝕹𝖊𝖜 𝖄𝖔𝖗𝖐 𝕿𝖎𝖒𝖊𝖘 recently published another piece of deceptive regime excreta.  From “Understanding the NY Times Article on the CIA in Ukraine,” 26 June 2022 by Larry Johnson at https://www.survivethenews.com/understanding-the-ny-times-article-on-the-cia-in-ukraine/:

    The New York Times published … a piece today under the title, Commando Network Coordinates Flow of Weapons in Ukraine, Officials Say.  Ooohhh!  Commando Networks.  Sounds sexy and sinister:

    [B]ut even as the Biden administration has declared it will not deploy American troops to Ukraine, some C.I.A. personnel have continued to operate in the country secretly, mostly in the capital, Kyiv, directing much of the vast amounts of intelligence the United States is sharing with Ukrainian forces, according to current and former officials.

    I want to ensure you understand the first key ‘talking point’ — the C.I.A. is still in Ukraine and working with both Ukrainian military and intelligence services ‘directing vast amounts of intelligence.’  This totally destroys any claim that the United States Intelligence Community does not know what is the true status and operational capability of the Ukrainian Army.  You see, if you are passing intel to the Ukrainians you are also in a position to glean what they are capable of doing with such information.

    The next critical talking point in the NY Times piece concerns the news that U.S. special forces and special operations forces supposedly are not operating in Ukraine.  We have left that dirty, dangerous work to commandos from Britain, France, Canada and Lithuania.

    But all of this is window dressing to distract from the real news in the NY Times piece.  It is in the last five paragraphs of the article:

    “The Ukrainian military’s most acute training problem right now is that it is losing its most battle-hardened and well-trained forces, according to former American officials who have worked with the Ukrainians.

    Having American trainers on the ground now might not be worth the risks, other former officials said, especially if it prompted an escalation by President Vladimir V. Putin of Russia.

    ‘Would the enhancement of the training be worth the possible price that is going to have to be paid?’  Mr. Wise said.  ‘An answer is probably not.’”

    Got that?  The most acute problem is that the best Ukrainian troops are dead, wounded or captured.  There are no first rate troops left to train.  Oh my.  That is a problem and the United States is not going to put any of our troops into harm’s way.  That is, for now, the Biden Administration’s policy.  Putting ‘modern special operations teams’ on the ground to train Ukrainians is, per the NY Times piece, too great a risk and carries a price that is not worth the outcome.

    At least one reporter is telling the truth.

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