Kremlin denies restricting gas supplies to Europe for political gain | Gas

The Kremlin has denied utilizing Russia’s gas sources to flip the screw on Europe, after gas in a pipeline to Germany switched route to circulate eastwards for a second day, conserving costs close to report highs as midwinter approaches.

Flows by means of the Yamal-Europe pipeline to Germany declined over the weekend earlier than stopping on Tuesday and reversing, knowledge from the community operator Gascade confirmed.

Gazprom, the Russian state gas agency, mentioned the availability was flowing to Russia as an alternative due to chilly climate and excessive demand there.

The availability squeeze got here as Mario Draghi, the Italian prime minister, known as for pressing motion to counter rocketing gas prices. He mentioned corporations benefiting from the disaster ought to contribute to efforts to curb larger payments for households and companies.

“There are large producers and sellers of power which can be having incredible income. They may want to take part to help the financial system, they too want to assist households,” Draghi mentioned in Rome.

The front-month wholesale Dutch gas worth, the benchmark for European costs, rose greater than 20% on Tuesday to shut at a report excessive of €181 per megawatt hour (MWh). The equal British gas contract additionally jumped by about 20% on Tuesday, to hit a brand new peak at £4.51 per therm, up from round 51p a 12 months in the past.

Claims that Russia is using energy as a weapon is nonsense, says Putin – video
Claims that Russia is utilizing power as a weapon is nonsense, says Putin – video

Costs dipped on Wednesday however remained excessive. The worth of gas for supply in Europe subsequent month fell 3% to €175 per MWh, and the British front-month contract eased to £4.17 per therm.

Some analysts and European politicians have advised Moscow is intentionally suppressing gas deliveries to shore up its political place amid tensions over Ukraine and delays in European certification of one other pipeline, Nord Stream 2.

The Kremlin denied utilizing such techniques. “There’s completely no connection [to Nord Stream 2], this can be a purely business state of affairs,” a spokesperson mentioned.

The German energy suppliers RWE and Uniper, each among the many largest prospects of Gazprom, mentioned the state agency was assembly its supply obligations.

Enroll to the every day Enterprise Right this moment e mail or comply with Guardian Enterprise on Twitter at @BusinessDesk

Gazprom has beforehand mentioned it’s assembly all long-term contracts with its European prospects

The pipeline reversal has added to different pressures which have saved gas costs excessive for a lot of 2021, with knock-on results which have included a raft of UK power suppliers going bust.

In an indication of rising anxiousness in regards to the influence of hovering gas and electrical energy prices, Bulgaria’s authorities accredited on Wednesday an $867m scheme to assist companies by means of the winter. The measures will embrace compensation for energy distribution corporations and heating utilities to attempt to head off a leap in family power payments.

Underlying components fuelling the recent spikes in gas costs embrace colder climate and robust energy station demand, with some French nuclear crops closed to deal with security issues.

Additionally, wind speeds have been slower than regular in Europe, that means generators have generated much less electrical energy than hoped for.

Ships carrying liquefied pure gas certain for Asia have been turning round to provide European customers keen to pay a big premium amid worth spikes, the Monetary Instances reported this week.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button