Russia again cuts natural gas exports thru European pipeline

Jun 14, 2022, 6:16 PM | Updated: Jun 15, 2022, 10:55 am
Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, takes part in the East...

Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, takes part in the East German Economic Forum (OWF) in Bad Saarow, Germany, Monday, June 13, 2022. From June 12-14, 2022, personalities from Germany and abroad will meet at the forum for the 7th time. Energy supply security in times of crises and climate change, transformation and attracting skilled workers are key topics of the East German Economic Forum. (Patrick Pleul/dpa via AP)

(Patrick Pleul/dpa via AP)

              German Economy and Climate Minister Robert Habeck, front right, look on as German Chancellor Olaf Scholz, front left, opens the 'Alliance For Transformation' summit at the Chancellery in Berlin, Germany, Tuesday, June 14, 2022. (AP Photo/Michael Sohn, pool)
            
              Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, takes part in the East German Economic Forum (OWF) in Bad Saarow, Germany, Monday, June 13, 2022. From June 12-14, 2022, personalities from Germany and abroad will meet at the forum for the 7th time. Energy supply security in times of crises and climate change, transformation and attracting skilled workers are key topics of the East German Economic Forum. (Patrick Pleul/dpa via AP)

BERLIN (AP) — Russia’s Gazprom announced a reduction in natural gas flows through a key European pipeline for the second day in a row Wednesday, creating further energy turmoil for Europe as it tries to reduce its extensive use of Russian oil and natural gas amid the war in Ukraine.

The state-owned energy giant said on Twitter that deliveries through the Nord Stream 1 pipeline to Germany would be cut again Thursday, bringing the overall reduction through the undersea pipeline to 60%.

The drop in shipments of gas used to power industry and generate electricity would amount to some 16 billion cubic meters by the end of the year, or around 10% of total European Union gas imports from Russia, according to Simone Tagliapietra, an energy policy expert at the Bruegel think tank in Brussels.

The new cut came a day after Gazprom said it would reduce flows by 40% after Canadian sanctions over the war prevented German partner Siemens Energy from delivering overhauled equipment. It blamed the same issue for the additional reduction.

But German Vice Chancellor Robert Habeck said Wednesday that Gazprom’s initial move appeared to be political rather than a result of technical problems. He said the new developments “clearly show the Russian side’s explanation is simply an excuse.”

“Obviously, the strategy is to unsettle people and push up prices,” Habeck said.

Gazprom also told Italian gas giant Eni that it would reduce gas through a different pipeline by roughly 15% on Wednesday. The reason for the reduction has not been made clear, and the Italian company said it was monitoring the situation.

The reduced flows to two of Europe’s biggest importers of Russian natural gas follow Russia’s previous halt of gas supplies to Bulgaria, Poland, Finland, the Netherlands and Denmark.

Europe is working to reduce its dependence on Russian energy as the war worsens rising oil and gas prices that are fueling record inflation. Gas demand has fallen after the end of the winter heating season, but European utilities are racing to refill storage ahead of next winte r with prices high and supplies uncertain.

While gas storage is refilling well, the cutoffs and reductions come on top of an explosion at a liquefied natural gas terminal in Texas whose exports were largely going to Europe, adding another squeeze to the tight natural gas market, energy expert Tagliapietra said. He urged Europe “not to be complacent and urgently scale-up coordination” so the continent is “prepared for a possibly difficult winter ahead.”

Tagliapietra said the Kremlin was pursuing several goals in order to undermine European unity and backing for sanctions against Russia.

One was short-term market manipulation to drive up gas prices, creating more stress on Europe and more revenue for Russia. Another goal, after the cutoffs to smaller countries, “is to remind the big countries that the gas is not to be taken for granted.”

“Russia never acts on a general level. It is always targeting individual countries, one by one, always to play this divide and rule strategy from the very beginning,” Tagliapietra. “This is a strategic game, this is not random.”

Siemens Energy said a gas turbine that powers a compressor station on the Nord Stream 1 pipeline had been in service for more than 10 years and was taken to Montreal for a scheduled overhaul. But because of sanctions imposed by Canada, the company has been unable to return the equipment to Gazprom.

Habeck, who is also Germany’s economy minister and responsible for energy, told reporters in Berlin that he had established with the EU’s executive Commission that the maintenance of Siemens compressor stations on the pipeline isn’t subject to EU sanctions.

He said officials are in contact with Canada to check what is possible under Ottawa’s sanctions. But he added that, as far as German officials know, the first “relevant” maintenance session isn’t due until the fall, and because there are several such installations, that wouldn’t explain a 40% reduction.

“So I also have the impression that what happened yesterday is a political decision, and not a decision that is technically justifiable,” Habeck said. “What effect it has on the European and German gas market, we will have to wait and see. As a rule, suppliers have always succeeded in getting hold of gas from other sources.”

He said there’s no supply problem in Germany, which gets about 35% of its natural gas from Russia, and it should be able to keep filling up reserves. Habeck said the missing gas can be obtained on the market but the price will be higher.

The EU has outlined plans to reduce its dependence on Russian gas by two-thirds by year’s end. Economists say a complete cutoff would deal a severe blow to the economy, consumers and gas-intensive industries. The 27-nation bloc is already reeling from high inflation this year.

“If you have the feeling that all your homework is done and everything is going well, you’re wrong,” Habeck said. “It isn’t over yet. It may only just be beginning … making ourselves independent from fossil energy and Russian fossil energy must be advanced at high pressure.”

___

AP reporter Nicole Winfield in Rome contributed.

___

Follow the AP’s coverage of the war at https://apnews.com/hub/russia-ukraine

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

fishery...
Associated Press

Much of drought-plagued West Coast faces salmon fishing ban

The surreal and desperate scramble boosted the survival rate of the hatchery-raised fish, but still it was not enough to reverse the declining stocks in the face of added challenges.
3 days ago
UCLA's Jaime Jaquez Jr. (24) shoots while defended by Gonzaga's Rasir Bolton (45) in the first half...
Associated Press

Gonzaga beats UCLA 79-76 in Sweet 16 on Strawther’s shot

Julian Strawther hit a 3-pointer with 6 seconds left to answer a 3-pointer by UCLA's Amari Bailey, lifting Gonzaga to a wild 79-76 NCAA Tournament win over UCLA Thursday night in the Sweet 16.
3 days ago
transportation...
Associated Press

Officials: Safety device, human error derailed Wash. train

A safety device failed, knocking a train off the tracks last week, spilling diesel after leaving an oil refinery in Anacortes.
3 days ago
File - Credit cards as seen July 1, 2021, in Orlando, Fla. A low credit score can hurt your ability...
Associated Press

What the Fed rate increase means for your credit card bill

The Federal Reserve raised its key rate by another quarter point Wednesday, bringing it to the highest level in 15 years as part of an ongoing effort to ease inflation by making borrowing more expensive.
4 days ago
police lights distracted drivers shooting...
Associated Press

Authorities: Missing mom, daughter in Washington found dead

A missing Washington state woman and her daughter were found dead Wednesday, according to police.
4 days ago
Google...
Associated Press

Google’s artificially intelligent ‘Bard’ set for next stage

Google announced Tuesday it's allowing more people to interact with “ Bard,” the artificially intelligent chatbot the company is building to counter Microsoft's early lead in a pivotal battleground of technology.
5 days ago

Sponsored Articles

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.
SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Russia again cuts natural gas exports thru European pipeline