Germany’s utility service says it does not see gas supplies as threatened and that reduced flows through the Nord Stream 1 pipeline under the Baltic Sea are in line with trade behavior and the previously announced gas cut-off from Russia to Denmark and the Netherlands, broadcast the German news agency dpa. . The Federal Bureau of Investigation said it was monitoring the situation. Spot gas prices have risen in Europe, a sign of concern about the possible further effects of the war on supplies of Russian gas, which powers industry and generates electricity on the continent. The European Union has outlined plans to reduce its dependence on Russian gas by two-thirds by the end of the year. Economists say a complete shutdown would deal a severe blow to the economy, consumers and gas-intensive industries. High energy prices are already contributing to a record 8.1% inflation in the 19 countries that use the euro. Gas demand has declined since the end of the winter heating season, but European utilities are struggling to replenish their warehouse ahead of next winter with high prices and uncertain supplies. “Gas supplies to the Nord Stream pipeline can currently be delivered in the amount of up to 100 million cubic meters per day (compared to the planned volume of 167 million cubic meters per day,” Gazprom said in a statement. It did not provide a timetable for the planned drop in gas flows. Siemens Energy said a gas turbine powering a compressor station on the pipeline had been in operation for more than 10 years and had been transported to Montreal for scheduled overhaul. However, due to sanctions imposed by Canada, the company was unable to return the equipment to the customer, Gazprom. “In this context, we have informed the Canadian and German governments and we are working for a viable solution,” Siemens Energy said in a statement. Also Tuesday, the German government announced that it was granting an emergency loan to a former Gazprom subsidiary to prevent it from going bankrupt and to secure the country’s gas supply. Germany appointed a government official to head Gazprom Germania in April, saying the move was temporary to bring “order” to the company after the Kremlin-controlled parent company severed ties with its subsidiary. Gazprom Germania, which plays a central role in trade, transportation and storage of gas in Germany and neighboring countries, was subsequently sanctioned by Russia in a move to punish Western sanctions on Ukraine. The DPA quoted unnamed government officials as saying the loan would be between $ 9 billion and $ 10 billion ($ 9.4 billion to $ 10.4 billion). The government said the loan would “prevent a bankruptcy and prevent a catastrophic impact on the market”. “The money will be used to boost liquidity and supply replacement gas,” she said in a statement. The government added that Germany’s Gazprom would also be renamed Securing Energy for Europe GmbH, or SEFE, as a “clear message to the market that the aim of the measures taken is to ensure energy supply in Germany and Europe”.
