A 3D printed natural gas pipeline is placed in front of the Gazprom logo shown in this illustration made on February 8, 2022. REUTERS / Dado Ruvic / Illustration / Archive photo
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- Gazprom says it is cutting off supply to GasTerra
- The Russians cite the refusal to pay in rubles
- Danish also on guard for possible cut
- Move a day after the EU agreed to cut Russian oil imports
- European gas price rises 5%
May 31 (Reuters) – Russia expands gas cuts in Europe on Tuesday with Gazprom (GAZP.MM) cutting off supplies to major Dutch trader GasTerra, boosting the economic battle between Moscow and Brussels and raising European prices of gas. Read more
The move comes a day after Denmark signaled a potential end to its Russian gas supply and the European Union’s toughest measure so far against Russia for its invasion of Ukraine, an agreement to halt maritime imports of its oil . Read more
GasTerra, which buys and sells gas on behalf of the Dutch government, said it had elsewhere contracted the 2 billion cubic meters (bcm) of gas it expected to receive from Gazprom by October.
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“This is not yet seen as a threat to supplies,” Economy Ministry spokesman Pieter ten Bruggencate said.
Danish company Orsted (ORSTED.CO) warned on Monday that Gazprom Export could also cut off its supply, but also said the move would not immediately jeopardize Denmark’s gas supply. Read more
The benchmark gas contract for the first month rose by around 5% on Tuesday morning to 91 euros / MWh, but remained well below the highs above the 300 euros / MWh reached in early March.
“While the market was largely expecting both companies to be cut, this development will make the balance between supply and demand much tighter,” ICIS analyst Tom Marzec-Manser said on Twitter. .
Russian gas flows to Germany via the Nord Stream pipeline fell on Tuesday, which analysts say is likely due to the cut in the Netherlands. Read more
Moscow had already stopped supplying natural gas to Bulgaria, Poland and Finland, alleging its refusal to pay in Russian rubles, a demand made in response to Western sanctions that have isolated Russia, including its shutdown of the banking messaging system. SWIFT International. Read more
Cuts in gas supply have boosted already high gas prices, raised inflation and encouraged European governments and businesses to look for alternative supply and infrastructure to manage it, including floating storage units and regasification (FSRU).
Europe has rushed to fill its gas storage sites to boost pre-winter supply, distrusting Russia’s supply cuts, which typically supply about 40% of Europe’s gas. Read more
Dutch gas storage is 37% full, according to data from Gas Infrastructure Europe.
The Dutch government said last week that it would increase subsidies to 406 million euros to encourage companies to fill the Bergermeer facility, one of the largest open access gas storage facilities in the world. Europe.
On Monday, EU leaders agreed in principle to reduce Russian oil imports from the EU by 90% by the end of the year, increasing pressure on Russia for its invasion of Ukraine, which Moscow is referring to a “special military operation”. Read more
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Report by Toby Sterling and Anthony Deutsch in Amsterdam; Jan Strupczewski and Philip Blenkinsop in Brussels; Stine Jacobsen in Copenhagen; Susanna Twidale in London; written by Jason Neely, edited by Carmel Crimmins
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