Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Nord Stream gas capacity constrained as sanctions delay equipment

Published 14/06/2022, 13:39
Updated 14/06/2022, 17:25
© Reuters. FILE PHOTO: Pipes at the landfall facilities of the 'Nord Stream 1' gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke

(Reuters) -The capacity of Gazprom (MCX:GAZP)'s Nord Stream 1 pipeline to supply gas to Europe is partly constrained as sanctions make it impossible for equipment supplier Siemens Energy to return a turbine being maintained in Canada, the companies said.

Gazprom said on Tuesday it has curbed supplies via the Nord Stream 1 undersea pipeline to Germany to up to 100 million cubic metres (mcm) per day, down from 167 mcm, citing the delayed return of equipment that had been sent for repair.

This limits Russian gas supplies via another important route to Europe at a time when Germany, the region's biggest economy, questions Moscow's reliability as an energy provider, prompting efforts to look for alternative sources.

Gazprom no longer exports gas westwards through Poland via the Yamal-Europe pipeline following Russian sanctions against EuRoPol Gaz, which owns the Polish section. Flows via Yamal-Europe continue eastwards from Germany to Poland.

"Due to the delayed return of gas compressor units from repair by Siemens ... and technical engines' malfunctions, only three gas compressor units can currently be used at the Portovaya compression station," Gazprom said.

Siemens Energy, which was spun off from former parent Siemens in 2020, said in a statement that it supplied so-called aeroderivative gas turbines for a compressor station for Nord Stream 1 in 2009.

These were manufactured in Canada and needed to be regularly sent back for maintenance, Siemens Energy said, adding one of the turbines was currently being overhauled in Montreal.

"Due to the sanctions imposed by Canada, it is currently impossible for Siemens Energy to deliver overhauled gas turbines to the customer. Against this background we have informed the Canadian and German governments and are working on a viable solution," the company said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Separately last month, Ukraine suspended Russian gas flows via one of the two transit points to Europe, cutting off a third of the Russian gas which is piped to Europe through Ukraine.

Physical flows through the Nord Stream 1 pipeline fell on Tuesday to around 41 million kilowatt hours (kWh) per hour from 1200 GMT, down from about 52 million kWh up until then, data from the pipeline operator available around 1528 GMT showed.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.