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Escobar: Nord Stream 2 Offers Germany A Date With Destiny

Escobar: Nord Stream 2 Offers Germany A Date With Destiny

The twists and turns of the Nord Stream 2 (NS2) saga have yielded yet another stunning game-changer…

It started with Gazprom revealing that the Line B string of NS2 is intact; not only it escaped Pipeline Terror but may “potentially” be used to pump gas to Germany.

That confirms once again that NS2 is an engineering marvel. In fact the whole system: the pipes are so strong they were not broken, but merely punctured.

Russian Deputy Prime Minister Aleksandr Novak followed up, with a caveat: restoration of the whole system, including NS, is possible, and “requires time and appropriate funds”. But first, in Russia’s order of priorities, the perpetrators must be conclusively identified.

Sources in Moscow confirmed Gazprom’s assessment of NS2. Even Bloomberg had to report it.

Subsequently in Vienna, attending the Opec+ meeting, Novak remarked the Russian Federation is “ready to supply gas through the second line of Nord Stream 2. This is possible if necessary”.

So we know it’s possible. “Necessary” will depend on a political decision by Germany.

Novak also sharply noted that neither Russia nor the Nord Stream operators are allowed to investigate Pipeline Terror. Russia insists that without its participation the investigation is flawed.

Whatever the modus operandi of Pipeline Terror, incompetence was part of the package. No explosive charges were placed or detonated on Line B of NS2.

That means, as Novak said, it’s virtually ready for business. Line B is capable of pumping 27.5 billion cubic meters of gas a year, which happens to be half of the total capacity of NS.

…click on the above link to read the rest of the article…

Russian Gas Stops Flowing To Italy After ‘Problem’ In Austria

Russian Gas Stops Flowing To Italy After ‘Problem’ In Austria

Russian energy giant Gazprom PJSC suspended natural gas deliveries to Eni SpA, Italy’s largest oil company, on Saturday, reported Bloomberg.

“Gazprom informed that it is not able to confirm the gas volumes requested for today, stating that it’s not possible to supply gas through Austria. Therefore, today’s Russian gas supplies to Eni through the Tarvisio entry point will be at zero. Eni will provide updates in case supplies will be restored,” Eni wrote in a statement on its website. 

An Eni spokesperson told Bloomberg that Austria is still receiving NatGas from Gazprom:

“We are working to check with Gazprom whether it is possible to reactivate the flows to Italy.” 

Gazprom said NatGas flows from Austria to Italy were suspended because the Austrian operator refused to confirm “transport nominations” after recent regulatory changes in the landlocked country in the southern part of Central Europe.

It’s important to note most of the Russian NatGas delivered to Italy flows through Ukraine via the Trans Austria Gas Pipeline to Tarvisio in northern Italy on the border with Austria. Before Russia invaded Ukraine, Italy imported 95% of its NatGas, of which 45% came from Russia.

Those figures are drastically different today as Italy rejiggers its energy supply chain away from Russia and finds alternative supplies of NatGas from North Africa. Before this weekend, Russian NatGas accounted for only 10% of Italy’s imports. The new suppliers will help Italy boost storage levels ahead of winter.

“Outgoing Prime Minister Mario Draghi has been scouring the globe to secure gas supplies to protect Italy from potential supply interruptions from Russia, which has been putting pressure on the European Union over several rounds of sanctions in response to the invasion. Italy has been one of the most successful countries to source alternative supplies,” Bloomberg noted.

…click on the above link to read the rest of the article…

Escobar: Nord Stream Sabotage Propels ‘Disaster Capitalism’ To New, Toxic Level

Escobar: Nord Stream Sabotage Propels ‘Disaster Capitalism’ To New, Toxic Level

The sabotage of the Nord Stream (NS) and Nord Stream 2 (NS2) pipelines in the Baltic Sea has ominously propelled ‘Disaster Capitalism’ to a whole new, toxic level.

This episode of Hybrid Industrial/Commercial War, in the form of a terror attack against energy infrastructure in international waters signals the absolute collapse of international law, drowned by a “our way or the highway”, “rules-based”, order.

The attack on both pipelines consisted of multiple explosive charges detonated in separate branches close to the Danish island of Bornholm, but in international waters.

That was a sophisticated operation, carried out in stealth in the shallow depth of the Danish straits. That would in principle rule out submarines (ships entering the Baltic are limited to a draught of 15 meters). As for prospective “invisible” vessels, these could only loiter around with permission from Copenhagen – as the waters around Borholm are crammed with sensors, reflecting fear of incursion by Russian submarines.

Swedish seismologists registered two underwater explosions on Monday – one of them estimated at 100 kg of TNT. Yet as much as 700 kg may have been used to blow up three separate pipeline nodes. Such amount could not have possibly been delivered in just one trip by underwater drones currently available in neighboring nations.

The pressure on the pipelines dropped exponentially. The pipes are now filled with seawater.

The pipes on both NS and NS2 can be repaired, of course, but hardly before the arrival of General Winter. The question is whether Gazprom – already focused on several hefty Eurasian customers –  would bother, especially considering that Gazprom vessels could be exposed to a possible NATO naval attack in the Baltic.

…click on the above link to read the rest of the article…

In Dramatic Escalation, European Nat Gas Prices Soar After Gazprom Warns Ukraine Flows At Risk

In Dramatic Escalation, European Nat Gas Prices Soar After Gazprom Warns Ukraine Flows At Risk

In a day of constant news surrounding European gas flows, including the potential sabotage of the Nord Stream pipeline, moments ago, Russia state-owned gas giant Gazprom PJSC warned that another major source of gas flows to Europe was at risk, just hours after three massive gas pipelines were hit by suspected sabotage.

As Bloomberg reports, in a dramatic escalation of the energy standoff between Russia and Europe in little over 24 hours, the Nord Stream pipeline was knocked out by what German officials said looked like sabotage. Gazprom then said that one of two remaining routes bringing gas to Europe – via Ukraine – was at risk because of a legal spat.

Specifically, as Reuters notes, Gazprom rejected all claims from Ukraine’s energy firm Naftogaz in arbitration proceedings over Russian gas transit, and had notified the arbitration court. It also said that Russia may introduce sanctions against Naftogaz in case it further pursues the arbitration case, meaning Gazprom would be prohibited by the sanctions from paying Ukraine the transit fees.

Naftogaz had initiated a new arbitration proceeding against Gazprom earlier this month, saying the Russian company did not pay for the rendered service of gas transportation through Ukraine. The company had said “funds were not paid by Gazprom, neither on time nor in full” for the gas transit.

Gazprom said on Tuesday that Naftogaz had no “appropriate reasons” to reject its obligations on transit via the Sokhranovka point, a key route for Russian gas exports to Europe.

In May, Ukraine suspended the flow of gas through Sokhranovka, which it said delivers almost a third of the fuel piped from Russia to Europe through Ukraine, blaming Moscow for the move and saying it would move the flows elsewhere.

…click on the above link to read the rest of the article…

Surprise: Gazprom “Completely Halts” Nord Stream Gas Supplies Due To “Unexpected” Leak

Surprise: Gazprom “Completely Halts” Nord Stream Gas Supplies Due To “Unexpected” Leak

After a 3-day halt, Russian energy giant Gazprom was expected to resume critical supplies of nat gas to Europe via Nord Stream 1 tomorrow, but it appears that Putin is enjoying the game of cat and mouse a little too much, and gas flows won’t be getting restored any time soon, because moments ago Gazprom announced that it had “completely halted” transport of gas to Nord Stream until a previously undetected oil leakage is rectified. That could takes hours, days… or months.

  • GAZPROM ISSUES STATEMENT ON NORD STREAM 1 MAINTENANCE
  • GAZPROM: TRANSPORT OF GAS TO THE NORD STREAM PIPELINE HAS BEEN COMPLETELY HALTED UNTIL FAULTS ARE RECTIFIED
  • GAZPROM: DURING ROUTINE MAINTENANCE WORKS OIL LEAKAGE WAS DETECTED
  • GAS SUPPLIES TO NORD STREAM FULLY STOPPED
  • GAZPROM STATEMENT GIVES NO TIME FRAME FOR RESTART OF GAS SUPPLY THROUGH NORD STREAM 1

To quote Walter Sobchak, “Mark it zero” for the foreseeable future.

That means that Europe will now be forced to rely even more on… well… Russian gas, in the form of much more expensive LNG resold by China. And after tumbling by more than 50% in the past few days, we fully expect European gas prices are about to go super parabolic and take out all time highs as soon as trading returns on Monday.

The news promptly sent spoos sliding back under 4000.

EU Natural Gas Prices Soar As Gazprom Readies Nord Stream Cuts, US NatGas Hits 14-Year High

EU Natural Gas Prices Soar As Gazprom Readies Nord Stream Cuts, US NatGas Hits 14-Year High

European natural gas futures extended gains by 12% after Russian state-owned energy producer Gazprom PJSC unexpectedly announced it would halt a Nord Stream 1 turbine at its Portovaya compressor station from Wednesday. Simultaneously, US NatGas futures have spiked to 14-year highs.

Russian NatGas supplies to Europe via Nord Stream pipeline fell to 38% capacity from 40% on Tuesday, ahead of a more significant cut from current levels to just 20% on Wednesday.

In a statement, Gazprom said the Nord Stream pipeline would be pumping 33 million cubic meters a day, or 20% of capacity, from Wednesday, adding another turbine for the pipeline will be taken offline due to maintenance work.

Kremlin spokesman Dmitry Peskov said another Nord Stream turbine has “problems” and will be taken offline for maintenance.

Peskov noted a turbine sent to Canada earlier is “en route” but didn’t specify its exact location.

Western sanctions prolonged the average maintenance time of the Nord Stream.

“The situation is critically aggravated by the restrictions and sanctions imposed against our country,” the Kremlin spokesman continued.

Russian state media reported Monday that the turbine recently serviced in Canada by Siemens Energy AG had finally received export paperwork that will allow it to be shipped from Germany to Helsinki, Finland.

Nord Stream’s upcoming capacity declines sent Wholesale European NatGas futures up 12% to 196 euros. Prices have jumped more than 20% in two sessions and are near highs seen last winter at more than 200 euros.

EU Natgas prices are trading at an oil-barrel-equivalent price of $333….

Across the Atlantic, US NatGas futures extended gains, up more than 10% to $9.62, a 14-year high, amid concerns about hot weather and tight supplies.

…click on the above link to read the rest of the article…

Gazprom Reportedly Declares Force Majeure, Will Halt Gas Flows To Germany Indefinitely

Gazprom Reportedly Declares Force Majeure, Will Halt Gas Flows To Germany Indefinitely

Already days before the July 22 European “Doomsday” when the scheduled Russian 10-day maintenance of the crucial Nord Stream pipeline to Germany is slated to end – but which was thrown into deep doubt given Gazprom recently said it can no longer guarantee its “good functioning” due to crucial turbines being previously held up in Canada related to sanctions – the Russian energy giant has declared Force Majeure to one major European customer.

Simply put, Gazprom declared extraordinary and extreme circumstances to void itself from all contractual obligations to this customer, thus the gas will stop flowing indefinitely, as Reuters reports in a breaking development Monday, “Russian gas export monopoly Gazprom has declared force majeure on gas supplies to Europe to at least one major customer starting June 14, according to the letter seen by Reuters.”

The letter invoked “extraordinary” circumstances outside the company’s control, Reuters continues, citing a source saying the customer in question is Germany via the Nord Stream 1 pipeline.

As we’ve been detailing, German authorities have of late taken unprecedented steps in anticipation of an enduring Russian gas halt, essentially dimming the lights across the country – which has included everything from limiting hot water, to shutting down swimming pools, to quite literally dimming city street lights as it entered “alarm” stage over dwindling supply.

It seems this letter declaring its legal release from supply obligations going back to June 14 is in preparation for definitive action on July 22, namely that the pipeline’s operations are likely to remain suspended.

…click on the above link to read the rest of the article…

Gazprom Halts Gas Shipments To Europe Via Critical Pipeline

Gazprom Halts Gas Shipments To Europe Via Critical Pipeline

After European nations imported the most gas from Russian sources yesterday in months, scrambling to stock up on supplies as Russian President Vladimir Putin’s deadline to either pay for gas in rubles (or be cut off) came and wentRussian gas giant Gazprom has officially halted all deliveries to Europe via the Yamal-Europe pipeline, a critical artery for European energy supplies.

Instead of flowing toward Germany and the EU, gas supplies on Friday and Saturday started flowing in the opposite direction, according to Gascade, the network operator.

In recent months, the EU has already boosted imports of LNG from the US…

…and despite President Biden’s promise to bolster to exports to the EU (although he stipulated that not all of this additional capacity would come from the US), researchers at Goldman Sachs have already shown that US exports of LNG are already at capacity.

Another problem for pipeline-dependent Europe: the continent presently doesn’t have the infrastructure to allow it to rapidly ramp up imports of LNG, which must be carefully processed and “regassified” before it can be distributed to utilities and other distributors of energy.

A map below illustrates the level of dependence that various European economies have on Russia.

“London wants to be the leader of everything anti-Russian. It even wants to be ahead of Washington! That’s the cost!” Peskov outlined.

Germany reveals when it will run out of gas

Germany reveals when it will run out of gas

Natural gas storage facilities in Germany are half-empty, economy ministry says
Germany reveals when it will run out of gas

Natural gas reserves in Germany, which has one of the highest underground gas storage capacities in Europe, have fallen to historically low levels compared with previous years.

“According to the consolidated register of gas storage facilities of the European association Gas Infrastructure Europe, Germany’s gas storage facilities are 50.6% full (as of January 11, 2022),” the German Ministry of Economy said in response to a deputy’s request as quoted by RIA. “This corresponds to a theoretical working gas availability of 17.7 days,” it added.

This comes as Russian energy giant Gazprom said on Monday it has not booked any capacity to pump gas to Europe through the Yamal pipeline next month. The Yamal-Europe pipeline, which usually delivers Russian gas west into Europe, continued to send it eastward from Germany to Poland for a 28th successive day on Monday, data from German network operator Gascade showed.

The route between Poland and Germany had been operating in reverse mode since December 21, putting upward pressure on European gas prices.

Economists are warning of energy price spikes deeper into the winter, saying that Europe is yet to find itself physically short of gas during the current gas year, which began in October.

Overall, European storage facilities were 49.33% full as of January 12, according to Gas Infrastructure Europe. If the current rate of withdrawal is sustained, Europe’s reserves could be fully depleted by the end of winter delivery, it said.

Gazprom Will Halt Gas Flows To Moldova In 48 Hours Over Non-Payment

Gazprom Will Halt Gas Flows To Moldova In 48 Hours Over Non-Payment

European natural gas prices could surge as new reports indicate Gazprom will halt all natural gas flows to Moldova, an Eastern European country, in 48 hours over non-payment for its gas consumption. The news follows Germany’s energy regulator, which suspended the approval process for the Nord Stream 2 pipeline last week. Russian President Vladimir Putin continues to exert pressure on Europe with declining gas flows amid the onset of the Northern Hemisphere winter.

The crux of the issue is that Moldova has yet to pay its energy bill to Gazprom. Today is the scheduled date of payment. Yet, there is no payment,” Sergey Kupriyanov, Gazprom board chairman’s spokesman, said in a statement, according to RT News. He said the company is extremely disappointed” in Moldova’s failure to fulfill its obligations on its recently extended energy contract.

Gazprom was expecting payment for Moldova’s gas usage on Monday (Nov. 22). This comes after Chisinau, the capital of Moldova, struck a 5-year deal with the gas producer on Nov. 1.

Kupriyanov said Gazprom attempted to set “market gas price” for Moldova but had to then take into account the “difficult economic and financial situation” in the country and Putin’s position. In the deal, he said most of Chisinau’s terms were reached, including a special discounted price.

Moldova was only to pay for its current consumption, the spokesman said, adding that Chisinau is in breach of contract, forcing Gazprom to suspend gas flows. The contract extension comes as Chisinau has mounting unpaid gas bills with Gazprom.

According to RT, before the Nov. 1 deal was signed, “Chisinau was close to introducing a state of emergency in case of failed talks. The tense situation also sparked some allegations that Moscow sought to exert pressure on Chisinau to break up its deal with the EU…

…click on the above link to read the rest of the article…

“No Extra Gas Booked” – European Gas Prices Surge After Putin Punks Freezing Continent

“No Extra Gas Booked” – European Gas Prices Surge After Putin Punks Freezing Continent

In late October, the market rejoiced and nat gas prices puked (even as we warned this was just the latest joke the Kremlin was playing at gullible Europe’s expense) after news that Russian President Vladimir Putin had asked Gazprom to “gradually” raise volumes to Europe starting November 8. So fast forwarding to November 8, i.e., today when not only is there no gas being shipped to Germany via Russia’s anchor Yamal pipeline as of today…

… but there are there no signs the continent will get any relief any time soon, with Gazprom moments ago tightening the proverbial (and literal) squeeze on Europe’s gas supply:

  • GAZPROM DIDN’T BOOK EXTRA GAS PIPELINE CAPACITY FOR TUESDAY
  • GAZPROM OPTS AGAINST SENDING MORE GAS TO EUROPE VIA UKRAINE
  • NO PIPE SPACE BOOKED TO SHIP EXTRA GAS INTO GERMANY’S MALLNOW.

Today’s squeeze follows a supply shock on Sunday, when no extra capacity to send additional supplies to Europe was booked in auctions. That’s a disappointment for traders who had been counting on Gazprom to follow Putin’s orders to ease the continent’s supply crunch.

Oops.

Natural gas prices have more than tripled this year as Europe started the heating season with the lowest inventories in more than a decade. Russia had been keeping supplies capped, but traders were hoping for relief after Putin ordered Gazprom to send more gas to Europe from Nov. 8, when domestic storage sites were set to be full. Meanwhile, after peaking above €160 then tumbling back to €60, Dutch nat gas futures have resumed their steady climb again as the prospect of a freezing European winter once again gets all too real.

…click on the above link to read the rest of the article…

After Rapid-Fire “Blame Putin” Headlines, European Commission Quietly Affirms Russia Is Not Manipulating Gas Market

After Rapid-Fire “Blame Putin” Headlines, European Commission Quietly Affirms Russia Is Not Manipulating Gas Market

Putin earlier this week batted down as “utter nonsense” widespread accusations among Western media pundits that Europe’s energy crisis is due to the Kremlin using gas as a ‘geopolitical weapon’.  It now appears the European Commission is quietly agreeing with him. This as Nord Stream 2, which Washington has long battled to stop, is awaiting final approval from German regulators begore going online.

As the Economist summarized of the ongoing accusations: “Russia is responding to a view gaining currency in European capitals that Gazprom, the state-controlled energy goliath that is the continent’s biggest supplier, has been stoking the continent’s energy crisis by withholding exports of natural gas. European parliamentarians are demanding that Gazprom be investigated for not shipping more gas, allegedly as a ploy to secure final regulatory approval for the controversial Nord Stream 2 pipeline designed to ship Russian gas to Germany.”

Image via New York Times

A somewhat exasperated Kremlin spokesman Dmitry Peskov last week noted Gazprom has fulfilled its current obligations to the maximum extent possible under existing contracts: “Nothing can be delivered beyond the contracts. How? For free? It is a matter of negotiating with Gazprom,” he said.

Of course, the somewhat sensational headline-grabbing accusations are what dominated press reports for much of the week, with new Friday comments from the European Commission getting buried. Vice President of the European Commission Frans Timmermans indicated there’s no reason to believe Russia is manipulating the market.

Timmermans bluntly said the following in an interview with Bulgarian broadcaster bTV:

“Russia is fulfilling its gas supply contracts.” He added that “we have no reason to believe it is putting pressure on the market or manipulating it.”

…click on the above link to read the rest of the article…

Kemp: Forget Russian Intentions, Fundamentals Drove Up Europe’s Gas Price

Kemp: Forget Russian Intentions, Fundamentals Drove Up Europe’s Gas Price

European policymakers and some traders blame Russia for the low volume of gas stored across the region which has sent both gas and electricity prices surging to record highs.

Russia’s pipeline gas export monopoly Gazprom has met commitments for long-term contracts, its clients confirm. But it has not raced to book extra pipeline capacity for spot buyers, despite European calls for more supplies.

Some policymakers and traders have speculated additional gas has been deliberately withheld to make a diplomatic point and accelerate the approval of the Nord Stream 2 pipeline. Others say Russia has withheld gas to create a shortage, drive up prices and increase export revenues, similar to the way the OPEC+ producer group raises oil prices and its revenues.

The other possibility is Russia has not supplied more gas because it faces its own shortage and wants to rebuild domestic stocks after they were depleted by a cold winter in 2020/21.

There is no empirical way to determine which theory is correct or what Russia’s intentions have been. But whatever the reason, the result is the same: gas is in short supply and European energy prices have hit record levels.

Escalating energy prices are a global phenomenon. Shortages of gas, coal, electricity and to a lesser extent oil are evident across North America and Asia as well as Europe. In every case, very high and rapidly rising prices this year are a reaction to very low and rapidly falling prices last year during the coronavirus-driven recession.

Energy prices have always been strongly cyclical. In this instance, an exceptionally severe cyclical slump in 2020 has produced an equally extreme cyclical upswing in 2021.

…click on the above link to read the rest of the article…

Gazprom Plant Connected To Russia-China Gas Pipeline Shuttered Due To Fire

Gazprom Plant Connected To Russia-China Gas Pipeline Shuttered Due To Fire

China’s energy crunch has resulted in power rationing in more than half of the provinces and affected the world’s biggest production base for electronic gadgets to semiconductors to appliances, among other things. Beijing has ordered energy firms to “secure supplies at all costs” as winter fast approaches to avoid shortages. But as we learn this morning, a Gazprom gas processing plant, connected to Russia’s sole gas pipeline to China, shuttered operations following a fire at the facility, according to Bloomberg.

Irina Dmitruk, the spokeswoman for the Gazprom unit, said the blaze at the Amur processing facility in eastern Siberia was extinguished around 0500 London time.

Bloomberg’s top energy analyst Javier Blas tweeted what appears to be a video of the fire at the processing plant. He said, “still unclear what’s the damage.”

However, Blas tweeted: “Gazprom is saying that the main equipment at the plant was not damage, and that gas exports toward China continue in line with requests.” Still, a full damage assessment report has not been released.

The Power of Siberia began operations in late 2019, before the Amur plant was launched. The facility processes natural gas from Gazprom’s Chayanda field and is used as feedstock for petrochemical production.

Instances like these outline the fragility of the fossil fuel industry. If processing or pipelines are shut down amid energy crunches in Europe and Asia, it would be absolutely devastating, considering both continents have very low stockpiles of fossil fuels ahead of the winter season.

Gazprom: We’re Not Withholding Gas To Europe

Gazprom: We’re Not Withholding Gas To Europe

Russian gas giant Gazprom dismisses speculation and accusations that it is not supplying enough natural gas via pipeline to Europe, a senior official at Gazprom Export says.

So far in 2021, Gazprom’s gas deliveries to Europe have reached historic highs, Sergey Komlev, Head of the Contract Structuring and Pricing Directorate at Gazprom Export, wrote in an article for Gazprom’s corporate magazine, as carried by Russian news agency TASS.

Germany, Turkey, and Italy—some of Gazprom’s largest customers—all boosted imports of Russian gas in the first half of 2021, the manager said.

Gazprom’s exports to European countries rose by 23.2 percent between January and July, Komlev added.

“These figures prove the absurdity of accusing Gazprom of supply shortage,” the executive noted.

Europe is grappling with soaring natural gas and electricity prices ahead of the winter heating season due to tight gas supplies, very low gas inventories, and low wind power generation amid still weather.

More than 40 members of the European Parliament from all political groups have reportedly urged the European Commission to launch an investigation into Gazprom over alleged market manipulation that could have contributed to the record-high natural gas prices in Europe.

During the summer, even with the strong rebound in European natural gas demand and surging prices, Gazprom did not book additional entry capacity to Europe via Ukraine.

Analysts say that this could have been an opportunistic move from the Russian giant to drive up Europe’s gas prices further and take advantage of the very high prices. Other analysts think that Gazprom’s effective reduction in supplies would force Europe to recognize that gas customers on the continent need the controversial Nord Stream 2 pipeline to Germany bypassing Ukraine.

…click on the above link to read the rest of the article…

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