Gazprom stops gas supplies after mysterious “leaks”
GAZPROM GAS PIPELINE NORTH STREAM GAS PLANT PIPE CRANE
After a three-day hiatus for "Scheduled Maintenance", Russian energy giant Gazprom was supposed to resume critical natural gas supplies to Europe via Nord Stream 1 tomorrow, but it appears that Putin, who is having a little too much fun in playing cat and mouse, had other plans and consequently the Russian gas flows to Europe will not return anytime soon, given that a few moments ago Gazprom announced that it had "completely stopped" the transport of gas to Nord Stream up to when a previously undetected oil leak will not be repaired.
It could take hours, days… or months.
Here is a photo of the alleged "oil leak":
Gazprom has released a photo of the alleged “oil leak” that's going to keep the Nord Stream 1 gas pipeline closed for now. pic.twitter.com/91jH8P9qLi
– Javier Blas (@JavierBlas) September 2, 2022
The "shocking development" is a severe blow to Europe, which is scrambling to fill its gas deposits ahead of winter and has been trying to guess Moscow's next moves in the energy war for weeks.
To quote Walter Sobchak, it "marks zero" for the foreseeable future.
This means that Europe will be forced to rely even more on American, Middle Eastern or … Chinese LNG, ie Russian disguised as Chinese. Now it is necessary to see if the fall in the price of gas that has occurred so far will continue in the future or if we will see a rapid reversal in the price.
The price of the FTT would probably remain extremely high if the issue were not resolved quickly. If with NS1 stable, even at low levels, we could have seen the price go below 200 euros per Mw / h, a situation of maximum uncertainty, in which NS1 could open or not, or continue alternately, there is the danger that the price explodes. It all depends on the price elasticity of demand versus supply.
A renewed rally in gas prices in Europe in the wake of today's NS1 news will also likely heat the debate on government intervention in the market, with most public officials' statements so far pointing to intervention in gas markets. electricity.
How to check the price of electricity? One method could be, in the short / very short term, an auction system that pushes energy-intensive industrial companies to sell their assigned gas quotas. with an auction system. However, this can only be a system for the very short term, because the only solution for the medium to long term is to find new energy supplies.
As Bloomberg puts it, “this marks a dramatic escalation in the European energy crisis – and comes just as prices were easing. If the blockade persists, it puts families, factories and economies at risk, weakening the hand of Europe that supports Ukraine in the war against Russia ”. In other words, millions of virtue markers will be cold, hungry and dark this winter, but at least they will have a Ukrainian flag in their Twitter bio.
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The Gazprom article stops gas supplies after mysterious “Leaks” comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gazprom-arresta-le-forniture-di-gas-dopo-perdite-misteriose/ on Fri, 02 Sep 2022 21:56:36 +0000.