Oil And Gas
The most significant single pipeline carrying Russian gas to Germany starts annual maintenance on Monday, with flows expected to stop for ten days.
However, markets, governments, and companies are worried the shutdown might be extended due to the war in Ukraine.
The Nord Stream 1 pipeline transports 55 billion cubic meters (bcm) of gas annually from Russia to Germany under the Baltic Sea. It will undergo maintenance from July 11 to 21.
In June, Russia cut flows to 40% of the pipeline’s total capacity, citing Canada’s delayed return of equipment serviced by Germany’s Siemens Energy.
Canada said it would return the repaired turbine on the weekend, but it also said it would expand sanctions against Russia’s energy sector.
Europe is afraid that Russia may extend the scheduled maintenance to restrict European gas supply further, throwing plans to fill storage for winter into disarray and heightening a gas crisis that has prompted government emergency measures and painfully high consumer bills.
Robert Habeck, the German economy minister, has said the country should confront the possibility that Russia will suspend gas flows through Nord Stream 1 beyond the scheduled maintenance period.
Dmitry Peskov, a spokesperson of the Russian government, dismissed claims that Russia was using oil and gas to exert political pressure, saying the maintenance shutdown was a regular, scheduled event and that no one was inventing any repairs.