Jun 16, 2022, 16:50 pm
Written by Tim Korso
Published: June 15, 2022
European gas prices have already been on the rise amid geopolitical instability and numerous threats by EU countries to drop Russian fossil fuel purchases, without clear options to replace them in the near future.
Natural gas prices on the European exchanges have jumped by 25% during the day with trading exceeding $1,300 per thousand cubic metres for the first time since 27 April.
The day's trading started at $1,069 per thousand cubic metres (ptcm) and was just 2% higher than the last day's closing price. However, later during the intraday trading, it rapidly jumped to its latest peak of $1,301.2 ptcm.
The skyrocketing price apparently came as a response to the news that Russian gas giant Gazprom has reduced supplies through the Nord Stream pipeline to 59.1% of its overall capacity - or 100 million cubic metres. The company explained that the reduction was related to the inability to use all of the pipeline's pumps because European equipment supplier Siemens Energy could not return a turbine after having received maintenance in Canada due to anti-Russian sanctions.
On 15 June, Gazprom said it will be stopping another turbine installed on the Nord Stream the following day, which will lead to a further reduction of supply to 67 million cubic metres. The reason for disabling the turbine is the same.
Despite Gazprom's explanations, German Chancellor Olaf Scholz alleged that the reason for reducing the Nord Stream output was political, not technical. Germany remains one of the key buyers of Russian natural gas with most coming through the Nord Stream pipeline. Despite that, Berlin joined other western countries in calling for a phasing out of Russian energy as a means to pressure Moscow into stopping the special military operation in Ukraine.
So far, European countries only agreed to walk away from sea-based Russian oil deliveries as part of the sixth sanctions package against Moscow, despite vehement opposition of some member states. Several European countries have called to drop gas purchases from Russia as well in the next package, but it is not clear at the moment how these significant supplies will be replaced, with global LNG production already at its limit.
Gas prices began increasing worldwide in September 2021 as global demand rose amid economic recovery from months of COVID-19 lockdowns. The increase continued into 2022, with gas prices surging to a record high due to Western sanctions imposed on Russia over its military operation launched in Ukraine in late February.
https://sputniknews.com/20220615/europea...48491.html
Published: June 15, 2022
European gas prices have already been on the rise amid geopolitical instability and numerous threats by EU countries to drop Russian fossil fuel purchases, without clear options to replace them in the near future.
Natural gas prices on the European exchanges have jumped by 25% during the day with trading exceeding $1,300 per thousand cubic metres for the first time since 27 April.
The day's trading started at $1,069 per thousand cubic metres (ptcm) and was just 2% higher than the last day's closing price. However, later during the intraday trading, it rapidly jumped to its latest peak of $1,301.2 ptcm.
The skyrocketing price apparently came as a response to the news that Russian gas giant Gazprom has reduced supplies through the Nord Stream pipeline to 59.1% of its overall capacity - or 100 million cubic metres. The company explained that the reduction was related to the inability to use all of the pipeline's pumps because European equipment supplier Siemens Energy could not return a turbine after having received maintenance in Canada due to anti-Russian sanctions.
On 15 June, Gazprom said it will be stopping another turbine installed on the Nord Stream the following day, which will lead to a further reduction of supply to 67 million cubic metres. The reason for disabling the turbine is the same.
Despite Gazprom's explanations, German Chancellor Olaf Scholz alleged that the reason for reducing the Nord Stream output was political, not technical. Germany remains one of the key buyers of Russian natural gas with most coming through the Nord Stream pipeline. Despite that, Berlin joined other western countries in calling for a phasing out of Russian energy as a means to pressure Moscow into stopping the special military operation in Ukraine.
So far, European countries only agreed to walk away from sea-based Russian oil deliveries as part of the sixth sanctions package against Moscow, despite vehement opposition of some member states. Several European countries have called to drop gas purchases from Russia as well in the next package, but it is not clear at the moment how these significant supplies will be replaced, with global LNG production already at its limit.
Gas prices began increasing worldwide in September 2021 as global demand rose amid economic recovery from months of COVID-19 lockdowns. The increase continued into 2022, with gas prices surging to a record high due to Western sanctions imposed on Russia over its military operation launched in Ukraine in late February.
https://sputniknews.com/20220615/europea...48491.html