Gazprom to Halt Nord Stream Gas Link for Three Days for Works
Comment of the Day

August 19 2022

Commentary by Eoin Treacy

Gazprom to Halt Nord Stream Gas Link for Three Days for Works

This article from Bloomberg may be of interest to subscribers. Here is a section:

“Upon completion of the work and the absence of technical malfunctions of the unit, gas transport will be restored to the level of 33 million cubic meters per day,” Gazprom said.

The gas flow after works is equivalent to 20% of capacity. The pipeline can normally carry about 167 million cubic meters per day.

The Portovaya compressor in Russia, where the pipeline begins, is designed to operate six major and two smaller turbines. While one turbine is stranded in Germany after its maintenance in Canada, others that are still in Russia need repairs either in Canada or at the venue.

Eoin Treacy's view

Germany’s efforts to refill storage tanks to 80% by October 1st appear to be on track. It comes at an enormous cost and is potentially crowding out Germany’s neighbours from the market. Storage is designed to compensate for outsized demand during winter, not a cessation, or a significant reduction in supply.

That’s a recipe for continued volatility in pricing as well as damage to demand. Norsk Hydro was the latest company to close production because of high energy costs yesterday.

Dutch natural gas prices continues to accelerate higher.

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