BERLIN (AP)—Natural gas prices rose on Friday after Russian state exporter Gazprom said it would no longer supply gas to Europe via the Polish pipeline, citing Moscow’s new sanctions on European energy companies. . The move doesn’t immediately precede large volumes of natural gas in Europe, but it does raise fears that the war in Ukraine will lead to widespread shutdowns.
Gazprom said on Thursday it will ban the use of the Yamal gas pipeline to Germany via Poland. Although it cuts off the supply route to Europe, the pipeline’s entry point to Germany has not been used in recent months. In addition, Gazprom has already shut down gas flows to Poland, as it refuses to meet Moscow’s demand for payment in rubles.
“There is a ban on dealing and negotiating with people under sanction. For Gazprom in particular, this means banning the use of a gas pipeline owned by (Polish company) EuRoPol GAZ to distribute Russian gas through Poland,” Gazprom spokesman Sergey Kupriyanov said in Telegram.
There are fears that gas disputes and gas shortages will increase in the background of the war in Ukraine. Gazprom said last month that it has completely cut gas supplies to Poland and Bulgaria over the ruble dispute.
“Blackmail”: Russia cuts gas to EU countries Poland, Bulgaria, rising energy prices in news bulletins: //t.co/wxpNajLjEK
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On Tuesday, Ukraine’s gas pipeline operator shut down a pipeline carrying gas from Russia to Europe, saying Russian forces were interfering with a compressor station in the Russian-controlled area and diverting gas. He asked Gazprom to pump the gas into another pipeline, but the company said it could not do that. The shutdown itself should not lead to a large interruption of the gas supply.
Energy tensions escalated in April when Russia imposed sanctions on Gazprom Germania, a subsidiary of a Russian supplier controlled by the German government, on Wednesday.
German Vice-Chancellor Robert Habeck said gas losses from Russia’s migration were “manageable” at around 10 million cubic meters per day and could be derived from other sources.
These actions further stimulated volatile energy markets. On Friday, natural gas traded at €104 per MWh, up from €94 before the announcement.
“Moscow starts a second wave of gas cuts in Europe, bringing new uncertainties and price increases,” said Kaushal Ramesh, senior analyst at Rystad Energy.
European utilities and governments are struggling to replace underground gas storage facilities, which run out in winter and have made enough progress to meet their gas needs for a year without supply from Russia. But at the end of next winter, it will be difficult for them to survive without rationing. The high price of natural gas has led to higher fees for home heating and electricity produced from this fuel.
European governments are trying to eliminate Russia’s energy, and the EU executive commission has proposed measures to reduce imports from Russia by two-thirds by the end of the year. Whether this can be accomplished remains to be seen.
Before the war, Europe was getting 40% of its natural gas and 25% of its oil from Russia.
Source: Breitbart
