Gazprom announces a new stop to Russian gas in Europe for next winter. The Russian energy giant, in a letter dated July 14 and revealed by the Reuters agency, would have warned its European customers that it could not fulfill its supply obligations - through the Nord Stream pipeline 1 which leads to Germany and from there to other European countries – “due to extraordinary circumstances beyond its control”. A way to protect themselves from possible legal disputes if European customers had to challenge the contracts for the stop of supplies. Gas trades on the threshold of 157 euros per megawatt hour, but Moscow's decisions could lead to further tensions on gas methane prices.
Supplies through the Nord Stream pipeline had already been suspended, from 11 to 21 July, for the ordinary maintenance which is carried out every year in this period of minimum requests and which should have ended precisely on Thursday. Given the circumstances, however, the alarm is raised of a stop by Moscow with serious consequences for Europe and the next winter season.
Gazprom: new stop to Russian gas and the mystery of the turbine in Canada
In the letter, Gazprom claims that it was able to fulfill its supply obligations "due to force majeure", an impossibility that came into force retroactively from deliveries starting from June 14 - when it had reduced the pipeline's capacity to 40% - and justified with the delay of one turbine maintained in Canada by the equipment supplier Siemens Energy, due to Western sanctions. In reality, Canada would have sent the turbine and the necessary material on July 17, after the repair work. It will take another five to seven days for the turbine to reach Russia, and as many for the installation procedure. But there are deep gray areas in the matter. According to German sources, the spare part was only to be used from September 2022, and therefore could not have been the reason for the stop at Nord Stream 1 before maintenance. All this suggests a pretext for the Kremlin to put pressure on the EU to reduce its sanctions against Moscow.
Europe is hunting for gas, Moscow is doing business with China
Putin is well aware that gas is his most powerful weapon against the Old Continent. For his part, Europe has launched a multi-year plan to free itself from Russian supplies. With Dragons in Algeria, Von der Leyen in Azerbaijan and Macron in the Emirates: all are looking for other ways not to face a "dark and cold" winter. But that might not be enough. The crux remains that of the times. If Putin really decides to turn off the gas taps, the "solidarity system” which could lead some countries with greater gas reserves – such as Italy – to cede methane quotas to states in greater difficulty: in this case Germany.
In the meantime, Moscow is turning its gaze to the East: if supplies of Russian gas to Europe have been decreasing for some months, those to the China, with a leap of 63,4% in the first half of 2022.
Eni: new contract in Algeria
Our country has moved quickly to disengage from Russia since the outbreak of war in Ukraine. Eni signed today, Tuesday 19 July, with Sonatrach, Oxy e Total Energy a new “Production Sharing Contract” for blocks 404 and 208 in Algeria. These blocks are located onshore, in the prolific Berkine basin (eastern Algeria), an area where Eni has been present for over 40 years. "The contract, signed pursuant to the new Algerian hydrocarbon law of 2019, will allow the partners to enhance investments, increasing the hydrocarbon reserves of the fields and extending their productive life for another 25 years", explains the Six-Coated Dog in a note. paws, adding that “it will also allow for the future valorisation of significant quantities of associated gas that could become available for export, contributing to the diversification of gas supplies to Europe". The agreed plan also includes new technologies to improve the recovery factor of reserves and reduce CO2 emissions through energy efficiency projects e decarbonization.
"With this new contract, additional volumes of gas will be made available for export and for the domestic market, in line with Eni's commitment to the energy transition", underlined Eni's CEO, Claudio Descalzi.
Brussels on the stop to Russian gas: "Immediately cut gas consumption"
Tomorrow July 20, the European Commission will present its contingency plan to address the possible energy crisis in the event of a blockade by Moscow. The ceiling on the price of gas, so much requested by Italy, remains far away.
Brussels, on the other hand, is reportedly preparing to tell EU members to "cut your gas consumption immediately, warning that without greater savings, the continent risks running out of supplies this winter as Russia limits supplies. The indiscretion comes from the Financial Times which claims to have seen a document drawn up by the Commission itself.
“The European Commission will provide members with voluntary gas reduction targets next week, according to a draft document seen by the British newspaper, which warns that the targets will be made mandatory in the event of a major supply disruption. Acting together will now be less disruptive and costly, facilitating solidarity and avoiding the need for unplanned and uncoordinated actions in a possible crisis situation with depleting gas reserves“, We read in the article.
