Russia to reduce Nord Stream 1 gas supplies by 20% after July 27

Pipes at the landfall facilities of the 'Nord Stream 1' gas pipeline in Lubmin, Germany. (Photo: Reuters)

Gazprom, a Russian state-owned energy corporation, has announced that it will further reduce gas flows through Nord Stream 1, Russia's largest gas pipeline to Europe, as it awaits the delivery of a critical turbine following repairs.

The business stated that it must cease functioning a Siemens gas turbine at a compressor plant, which will decrease gas flows via the Nord Stream 1 pipeline to 33 million cubic meters beginning on July 27.

"Due to expiration of time before prescribed time for overhaul, Gazprom is shutting down one more gas turbine produced by Siemens at the Portovaya CS," the company tweeted.

Gazprom expressed concern regarding the delivery of the turbine from Canada due to the potential impact of western sanctions placed on Russia due to the Ukraine war.

"Gazprom obtained paperwork provided by Canadian officials from Siemens. However, after examining the documents, Gazprom concluded that they do not eliminate the previously highlighted dangers and raise further problems," the Russian energy corporation stated.

Russia resumed deliveries via Nord Stream 1 on Thursday, following a 10-day maintenance halt. This stopped rumors that Moscow would permanently cut off the gas supply to the continent as early as July.

However, Russian President Vladimir Putin warned a week ago that flows might decrease by 20% if turbine problems are not addressed.

Gazprom stated, "Issues pertaining to EU and UK sanctions remain unresolved, despite the importance of resolving these issues for delivering the engine to Russia and performing urgent major repairs on other turbine engines."

Since last month, flows across the 1,224-kilometer Nord Stream 1 pipeline have been restricted to 40% of capacity. This is because a different turbine is delayed due to maintenance in Canada, as the impact of sanctions on Russia remains uncertain.

European officials have been grappling for months with the possibility of losing Russia's natural gas supply, which accounts for approximately 40% of European imports and has been a vital lifeline for the continent.

EU nations are exploring adjustments to a plan for cutting gas demand over the winter in response to certain governments' need for greater flexibility.

The International Energy Agency has warned Europe of the impending catastrophe, and the EU has been urged to implement suitable contingency preparations.

Fatih Birol, the agency's executive director, stated last week, "Russia's role in the European gas crisis has been clear from the beginning."

The EU must take quick action to ensure it has sufficient stocks to endure the winter.

If Nord Stream 1 flows maintain at a minimum of 40% of capacity and imports through other channels remain at the levels reported on June 17, before the start of maintenance, Europe will be able to refill its storage to over 80% by November 1. According to a recent assessment by the energy consulting firm Wood Mackenzie, Europe would manage gas consumption during the winter if the same conditions are satisfied.

Under normal conditions, Wood Mackenzie anticipates Europe can get through the winter season with an acceptable storage level.

Alternately, suppose Russia reduces Nord Stream supplies to zero by August this year. In that case, Europe will only be able to replenish its storage to between 70 and 75 percent by the beginning of winter. Russia would end the heating season with approximately 10 billion cubic meters of gas in storage, fearing demand reductions.

According to Wood Mackenzie's analysis, gas in storage could run out by the end of February 2023 if Europe and Asia experience a freezing winter.

The effects of a dramatic decline in Russian gas supplies will vary from country to country. Those most reliant on Russian gas, like Germany, Austria, and Central and Eastern Europe, will be the most vulnerable.

Publish : 2022-07-26 11:35:00

Give Your Comments