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Russia has halted the reopening of a gas pipeline, raising fuel fears in Europe

Aria Thomas

Sep 05, 2022 11:18

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Russia has postponed the Saturday deadline for resuming gas deliveries to Germany via the Nord Stream 1 pipeline, exacerbating Europe's difficulties in obtaining winter fuel. Russia blamed pipeline maintenance concerns with Nord Stream 1.


The Nord Stream 1 pipeline, which runs beneath the Baltic Sea, was due to resume operation on Saturday at 01:00 GMT, after a three-day maintenance stoppage.


Gazprom (MCX:GAZP), the state-owned monopoly on Russian gas exports via pipeline, announced on Friday that it would be unable to resume deliveries until an oil leak in a critical turbine was rectified. It did not offer a revised schedule.


Siemens Energy, which routinely repairs the turbines of Nord Stream 1, has claimed that a leak of this sort should not prevent the pipeline from operating. In addition, it was said that the Portovaya compressor station, where the leak was discovered, had additional turbines to keep the Nord Stream pipeline operational.


"Typically, such leaks do not hinder the functioning of a turbine and may be repaired on-site. It is a standard procedure within the scope of maintenance procedures "The business reported.


Moscow has claimed that Western sanctions implemented in reaction to Russia's invasion of Ukraine have impeded the maintenance and functioning of Nord Stream 1. This is a pretext, according to Brussels, and Russia is retaliating by using gas as an economic weapon.


Michael Roth, chairman of the foreign affairs committee of the German parliament, tweeted, "This is part of Russia's psychological war on us."


Siemens Energy indicated that it is not currently engaged to undertake maintenance on the line, but is on standby.


Ursula von der Leyen, the president of the European Commission, had previously indicated that the EU should impose a price cap on Russian pipeline gas to offset President Vladimir Putin's attempts to manipulate the market.


Russia has rejected allegations that it manipulates the gas market or exploits natural gas as a weapon.


Friday, a spokesperson of the National Security Council of the White House stated that the United States and Europe were cooperating to ensure enough energy supplies.


According to the spokeswoman, Russia's continuous use of energy as a weapon against European customers is unsurprising.


Since August 2021, wholesale gas prices have increased by 400%, affecting European industry and homes as demand recovers from the COVID-19 epidemic and Ukraine crisis.


"Due to Putin's manipulations, the electrical market no longer functions," Von der Leyen stated, adding that a European gas price cap on Russian pipeline supplies may be explored.


Former Russian President Dmitry Medvedev indicated that if Brussels implemented such a restriction, Moscow would cut off supplies to Europe.


As a response to Von der Leyen, he announced via the Telegram app, "There will be no Russian natural gas in Europe."


Reduced deliveries via Nord Stream and lower gas flows via Ukraine, an additional major route, have already left European states rushing to refill winter storage tanks and prompted many to activate emergency plans that might lead to energy rationing and stir worries of a recession.


Eric Mamer, a spokesman for the European Commission, declared on Twitter that Gazprom shut down Nord Stream 1 under "false pretenses." It also demonstrates Russia's cynicism, since it prefers to flare gas rather than fulfill its contractual duties.


The Group of Seven finance ministers decided on Friday to regulate the price of Russian oil exports. Moscow declared that it will suspend oil shipments to countries imposing the cap, claiming that the measure would destabilize oil markets. Russia is the world's greatest exporter of oil and fuel combined.

The German network regulator indicated that the country was better equipped to handle a disruption in Russian supply, but that households and companies still needed to limit their energy use.


The head of the Bundesnetzagentur, Klaus Mueller, commented through Twitter, "It's excellent that Germany is now better equipped, but it's now up to each individual."


Dmitry Peskov, a Kremlin spokesperson, speculated early on Friday that there could be additional Nord Stream 1 delivery interruptions.


"Gazprom is not accountable for the lack of available resources. Therefore, the dependability of the entire system is at danger" When asked whether additional disruptions could be expected, he said affirmatively.


Wednesday, the CEO of Gazprom, Alexei Miller, revealed that sanctions hindered Siemens from doing routine maintenance.


After Gazprom originally reduced flows in June and then again in July, EU nations have prepared for the possibility that Russia may suspend all deliveries.


This week's maintenance was announced with short notice.


Before winter, Germany, which mainly relies on Russian supply, scrambled to fill its storage tanks. This storage facility is now roughly 85% full, but Berlin cautions it will be impossible to reach the 95% target by November 1 unless businesses and households reduce their fuel consumption.


The EU has achieved its 80 percent goal for storage to be full by 1 October in preparation for increased heating demand, but this may not be sufficient to support Europe through the winter if Russia continues to close its taps.


Some energy-intensive European firms, like fertilizer and aluminum producers, have already restricted output in response to soaring energy costs, while some residential consumers have lowered energy consumption to save money on rising energy bills.