Home » Posts tagged 'nord stream'

Tag Archives: nord stream

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.

Gas Levy Could Triple Household Heating Bills In Germany

July 30, 2022

Gas Levy Could Triple Household Heating Bills In Germany

Germany plans to introduce a levy for all its gas consumers beginning in October as the government looks to avoid a wave of collapsing gas-importing and gas-trading companies amid record-high natural gas prices, a new bill seen by Reuters showed on Thursday.

Russia is further reducing flows via Nord Stream this week, to just 20% of the pipeline’s capacity, days after restarting the link at 40% capacity after regular maintenance.

The German government has already intervened to rescue energy group Uniper, Russia’s single largest gas buyer in Germany. Uniper—and many other German gas traders and suppliers—have been reeling from reduced Russian supply and soaring prices of non-Russian gas. Germany and Uniper agreed last week on a $15 billion bailout package, including the German government taking a 30-percent stake in the company and making more liquidity and credit lines available to the group.

Under the plans of the government, all consumers of gas, including households, will have to pay an additional levy, which will go to support Germany’s gas importing companies, which struggle with a lack of Russian gas and sky-high prices of non-Russian alternatives. The details of the bill are set to be announced next month.

Households and industrial consumers are expected to pay the levy through September 2024, according to the draft Reuters has seen.

“One doesn’t know exactly how much (gas) will cost in November, but the bitter news is that it’s definitely a few hundred euros per household,” German Economy Minister Robert Habeck was quoted by Reuters as saying on Thursday.

Marcel Fratzscher, president of DIW, the German Institute for Economic Research, told Düsseldorf’s Rheinischen Post newspaper that German households should prepare for at least tripled costs of heating on gas. The levy should be accompanied by a relief package for lower-income households, otherwise the new charge could lead to a “social catastrophe,” Fratzscher added.

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

July 26, 2022

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…

US Targets Russian Nord Stream-2 Gas Project: Déjà Vu Story

October 23, 2017

US Targets Russian Nord Stream-2 Gas Project: Déjà Vu Story

The US Countering Iran’s Destabilizing Activities Act of 2017 contains a separate section called the Countering Russian Influence in Europe and Eurasia Act (“CRIEEA”). CRIEEA authorizes – and at times requires – the President to impose significant new sanctions on the Russian energy, financial, and defense sectors, imperiling the completion of the Russian Nord Stream 2 gas pipeline. It also hits European businesses involved in the project. The legislation can impact a potentially large number of European companies doing legitimate business under EU measures with Russian entities in the railways, financial, shipping or mining sectors, among others. Now the US punitive measures could include the pipelines crossing the territory of Ukraine, as well as pipeline projects in the Caspian region and the development of the Zohr gas field off the coast of Egypt. The law negatively affected the US relationship with European allies.

Russian President Vladimir Putin believes that the world is witnessing an increasing number of examples of politics crudely interfering with economic, market relations. In his address to the final plenary session of the 14th annual meeting of the Valdai Discussion Club on October 19, Putin said “Some do not even conceal that they are using political pretexts to promote their strictly commercial interests. For instance, the recent package of sanctions adopted by the US Congress is openly aimed at ousting Russia from European energy markets and compelling Europe to buy more expensive US-produced LNG although the scale of its production is still too small.”

The US is striving to control the EU decision-making process. According to Washington’s logic, building a pipeline to reduce costs and raise reliability and efficiency proves that Russia is politically motivated, unlike the US with its new law adopted to pave the way for American LNG exports to Europe using coercive measures!

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

Impacts of Turkey’s Aggression against Russia. The “Turkish Stream” is Dead. Disruption of Gas Pipeline Routes to the EU. Russia’s Economy in Crisis?

November 28, 2015

Impacts of Turkey’s Aggression against Russia. The “Turkish Stream” is Dead. Disruption of Gas Pipeline Routes to the EU. Russia’s Economy in Crisis?

“Regime change” in Ukraine engineered by the US State Department was largely responsible for the collapse of the “South Stream” gas pipeline project. Washington’s intent was to establish a de facto blockade which would prevent the flow of Russian gas to the European Union.

“The South Stream gas pipeline worth €15.5 billion was intended to pump 67 billion cubic meters of Russian natural gas to Europe annually.

The pipeline’s underwater section 900 km (559 miles) long was intended to run along the bed of the Black Sea from the Russkaya compressor station on the Russian shore to the Bulgarian coast.” (TASS, January 14, 2015)

On December 1, 2014, President Vladimir Putin announced that the project to build the South Stream gas pipeline “was closed due to the European Union’s unconstructive approach to cooperation, including Bulgaria’s decision [pressured by the US] to stop the construction of the pipeline’s stretch on its territory.”

South Stream Pipeline Route Options, source TASS

The South Stream was replaced by the “Turkish Stream”. The scrapping of the South Stream was coupled with the signing in Ankara of a historic December 2014 deal between presidents Vladimir Putin and Recyyp Erdogan.

Under the Russian-Turkish agreement pertaining to gas pipeline routes, Turkey was slated to become a major hub and transit route for the export of Russian natural gas to both Southern and Western Europe.

Russia’s Gazprom in a historical announcement by CEO Alexey Miller in January 2015 confirmed that: The Turkish Stream gas pipeline project was considered “the sole route for Russia’s future supplies of 63 billion cubic meters of natural gas to Western Europe… The Gazprom head made this statement in response to a question about the fate of Russia’s South Stream gas pipeline project.” (Tass, January 14, 2015)

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

Nord Stream Two: Implications for Europe

October 23, 2015

Nord Stream Two: Implications for Europe

Russia, Germany, and a consortium of Western European companies have re-activated the Gazprom-led Nord Stream Two gas pipeline project. Parallel to the existing Nord Stream One pipeline on the Baltic seabed, Nord Stream Two would double the system’s total capacity to 110 billion cubic meters (bcm) annually, all earmarked for direct delivery to Germany.

Nord Stream is billed as the world’s biggest natural gas transportation project, in terms of pipeline length and throughput capacities. Initially announced in 2011–2012 through non-binding agreements of intent, Nord Stream Two had to be shelved for the duration of Europe’s economic slump. The project agreement signed on September 4, 2015, however, is binding. Gazprom’s management anticipates economic-financial recovery in Western Europe and, consequently, gas demand recovery by 2019, the target date for completing Nord Stream Two. It also expects gas extraction to decline in Norway after having been capped in the Netherlands, thus boosting European import demand.

The project’s other role is to bypass Ukraine’s gas transit system, its continuation through the Slovakian and Czech transit corridors, and potentially Poland’s. Those transit routes are beyond Gazprom’s control. The Kremlin intends to re-direct the lion’s share of its gas exports to the “old” European Union, into the Gazprom-controlled Nord Stream route. This would not merely deprive Ukraine and those other countries of transit revenue. Strategically, it would result in Gazprom controlling gas transportation as well as the supply to Western European customers.

Gazprom claims that it would, in due course, deliver “new gas”—i.e., gas sourced from newly developed fields—through Nord Stream. But it has not identified those resources; its barely disguised near-term intent is to switch the flow from Ukrainian pipelines into Nord Stream. For years to come, gas volumes diverted from Ukraine will be Nord Stream’s main resource.

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

‘Sanction Spiral’: Russian Natural Gas Exports to Europe Soar

September 26, 2015

‘Sanction Spiral’: Russian Natural Gas Exports to Europe Soar

The infamous “sanction spiral” imposed on Russia by the US and Europe with such fanfare last year in the wake of the Ukrainian fiasco has receded from Western headlines. In Russia, it coagulated with the oil price plunge, and during the first two quarters this year, the economy shrank sharply.

But whatever the “sanction spiral” was supposed to accomplish, some countries in Europe, among them Germany, are desperately dependent on Russian gas to heat homes and offices, and to supply power plants and industrial installation. The threat that Russia would turn off the valve hung over the EU last winter. At the time, Eurocrats beat the bushes to explain that no one would be without natural gas. But not everyone believed it, including the German government [LEAKED: What Happens to Germany if Russia Turns off the Gas].

The scare seems to have left a lasting impression.

Or was it just about money?

Over the winter, Russian natural gas exports by pipeline to Europe dropped to the lowest levels in years, and were 22% below the five-year average, according to US EIAcalculations of International Energy Agency data. Exports dropped even further to 6.4 billion cubic feet per day (Bcf/d) in January and 5.3 Bcf/d in February, down 36% and 40% respectively from the five-year average for these months.

But in March, natural gas exports from Russia to Europe began to increase. And by the second quarter, they jumped 58% over the first quarter. In July, the most recent month for which data is available, exports hit 11.9 Bcf/d. Exports via the Ukraine decreased, but exports via the Nord Stream pipeline into Germany soared 55% year-over-year in June and 59% in July to a new record. To heck with any half-forgotten sanctions (2015 exports, brown line):

Then there’s the money.

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

Reshuffling Eurasia’s Energy Deck — Iran, China and Pipelineistan

August 4, 2015

Reshuffling Eurasia’s Energy Deck — Iran, China and Pipelineistan

Pipelineistan – the prime Eurasian energy chessboard — never sleeps. Recently, it’s Russia that has scored big on all fronts; two monster gas deals sealed with China last year; the launch of Turk Stream replacing South Stream; and the doubling of Nord Stream to Germany.

Now, with the possibility of sanctions on Iran finally vanishing by late 2015/early 2016, all elements will be in place for the revival of one of Pipelineistan’s most spectacular soap operas, which I have been following for years; the competition between the IP (Iran-Pakistan) and TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipelines.

The $7.5-billion IP had hit a wall for years now – a casualty of hardcore geopolitical power play. IP was initially IPI – connected to India; both India and Pakistan badly need Iranian energy. And yet relentless pressure from successive Bush and Obama administrations scared India out of the project. And then sanctions stalled it for good.

Now, Pakistan’s Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi swears IP is a go. The Iranian stretch of the 1,800-kilometer pipeline has already been built. IP originates in the massive South Pars gas fields – the largest in the world – and ends in the Pakistani city of Nawabshah, close to Karachi. The geopolitical significance of this steel umbilical cord linking Iran and Pakistan couldn’t be more graphic.

Enter – who else? – China. Chinese construction companies already started working on the stretch between Nawabshah and the key strategic port of Gwadar, close to the Iranian border.

China is financing the Pakistani stretch of IP. And for a very serious reason; IP, for which Gwadar is a key hub, is essential in a much larger long game; the $46 billion China-Pakistan economic corridor, which will ultimately link Xinjiang to the Persian Gulf via Pakistan. Yes, once again, we’re right into New Silk Road(s) territory.

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

Tag Archives: nord stream

Content

Post categories

Economic Links

Energy/Resource Links

Environmental Links

Geopolitical Links

Liberty Links

News Links

Other Links

Survival Skills

Post Archives by Category

Latest Posts