European Gas Price Rises Sharply Again After Restrictions on Supplies to Gazprom

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European gas prices rose sharply on Thursday after Gazprom restricted gas supplies to Germany and Italy. On the leading stock exchange in Amsterdam, gas became more than a fifth more expensive. This week, almost half of the price has already been added.

 

Gazprom first cut the amount of gas Germany receives through the Nord Stream pipeline by 40 percent this week. That was then further reduced so that Germany now receives 60 percent less gas through the pipeline than a week earlier. Italian oil and gas group Eni announced that Gazprom would supply 15 percent less gas. However, the Italians claim to have received even less, namely about two-thirds of what was agreed.

Those were not the only steps taken by the Russian state gas company, because the Austrian and French gas suppliers OMV and Engie also say they have received less gas.

Gazprom says supplies through Nord Stream are limited due to parts maintenance and sanctions. A turbine was in Canada for maintenance and cannot be retrieved due to sanctions. CEO Alexei Miller warned that the situation will not improve soon. There are many parts of the Nord Stream pipeline that require maintenance, he said.

Due to reduced gas supplies, the German government has called on citizens and businesses to save as much energy as possible. In this way, the country can continue to fill its gas storage facilities.

Gas prices rose at the beginning of this week because Norway supplied less gas. There was also a fire at a large liquefied natural gas (LNG) terminal in Texas. As a result, less American LNG gas will probably come to Europe shortly. Many European countries see LNG as part of the replacement for Russian gas.

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