Russian natural gas supplies to Germany via the Baltic Sea pipeline, known as Nord Stream 1, is under a 10-day shutdown for annual maintenance work.
But German Economy Minister, Robert Habeck, warned that European Union countries must be prepared in case gas shipments did not resume after the planned maintenance. He accused the Kremlin of using gas “as a weapon” in response to EU sanctions over the ongoing invasion on Ukraine.
Mr. Habeck admitted Germany has become too dependent on Russian gas, describing that as “a grave political mistake as we can see today, which we are trying to remedy as quickly as we possibly can”. He said two floating terminals for deliveries of liquefied natural gas (LNG) would be ready by the end of the year (2022). In mid-June (2022), Russia’s state gas firm, Gazprom, cut gas flows through Nord Stream 1 to just 40% of the pipeline’s capacity. It blamed the situation delays in the return of equipment being serviced by Germany’s Siemens Energy.
As a result, the Canadian government said it will now return a repaired Siemens turbine to Germany for the pipeline. But the decision angered the Ukrainian government, which accused Canada of adjusting the sanctions imposed on Moscow “to the whims of Russia”. But Canada said it is granting Siemens Canada a “time-limited and revocable permit” to send repaired turbines back to Germany, despite the sanctions. Meanwhile, Germany’s government is worried that gas supplies could be reduced or cut permanently.
Works on Pipeline & Further Plans by Russia
Pipeline maintenance is regular every summer when gas demand is lower than in winter, but the worry is that Russia may not turn the taps back on.
The pipeline shutdown is also affecting Italy, where energy group, Eni, said it would receive about a third less gas from Russia’s Gazprom on Monday, July 11, 2022, compared with average volumes supplied over the past few days. The head of the International Energy Agency (IEA), Fatih Birol, warned that Russia may cut off gas supplies to Europe entirely and that Europe needs to prepare now.
Other Supply Cuts & Plans Ahead
Already as it stands, Russia has cut gas supplies to Poland, Bulgaria, the Netherlands, Denmark and Finland over their refusal to comply with a new payment scheme.
Austria and the Czech Republic get some gas from Nord Stream 1, but Russian gas also flows to them via a Ukraine pipeline. While visiting Prague (capital of the Czech Republic), Mr. Habeck signed an agreement with the Czech Republic, pledging mutual help in the event of a sharp drop in Russian gas supplies.
Since Russia’s invasion of Ukraine on Thursday, February 24, 2022, Germany reduced its dependence on Russian gas from 55% to 35% and wants to stop using gas from Russia altogether. Last year (2021), the other main suppliers of natural gas to Germany were Norway (31%) and the Netherlands (13%). Germany is now getting more gas from them, since reducing imports from Russia.
The government (Germany) has also given the go-ahead for Germany’s first LNG terminal to be built, at Wilhelmshaven (a town in Germany). Another undersea Baltic pipeline from Russia, Nord Stream 2, has been built, but plans to pump gas through it are now on hold because of the ongoing war. If Russian supplies were suddenly cut overnight, this could tip Germany into a major recession, because report suggests that most industries rely on gas and most German homes use it for heating.
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