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Nord Stream 1 resumes gas flows from Russia to Europe after fears of complete cutoff

Pipes at the landfall facilities of the ‘Nord Stream 1’ gas pipeline are pictured in Lubmin, Germany, March 8, 2022.

Hannibal Hanschke | Reuters

The operator of Nord Stream 1, a key gas pipeline which runs from Russia to Germany, said Thursday it was in the process of resuming flows to Europe.

There had been concerns across the region that there could be a complete shutdown of gas supplies via the pipeline after it was closed earlier this month for maintenance. Flows had been due to be restored Thursday after the completion of the works.

A spokesperson for Nord Stream confirmed to CNBC via email that the company is “in process of resuming gas transportation.”

“It can take some hours to reach the nominated transport volumes,” they added.

Data on operator Nord Stream’s website showed that flows increased from zero to 29,284,591 kWh/h for 0600-0700 Central European Time Thursday. On July 10, the last day of operations before the maintenance work began, flows were at roughly the same level, just above the 29,000,000 kWh/h.

It’s likely to be a welcome relief to European officials who have been scrambling to find alternative suppliers to Russian gas.

Germany, and the EU more broadly, have been dependent on Russian fossil fuels for years and there has been a broad-based attempt to reverse this in the wake of Moscow’s invasion of Ukraine. Since March, the EU has negotiated new gas deals with the United States and Azerbaijan, and has held talks with Israel and Qatar.

Speaking Wednesday, Ursula von der Leyen, European Commission president, said Russia was blackmailing Europe and using energy as a weapon. Russia has repeatedly denied it is weaponizing fossil fuel supplies and The Kremlin was not immediately available for comment when contacted by CNBC Thursday.

Despite news that flows have restarted, the EU will continue to push ahead with contingency plans in case of a full shut down in gas supplies from Russia. The commission has told the 27 EU nations that they need to cut their gas consumption by 15% until March, in an effort to save energy.

Von der Leyen has said that it is likely that the Kremlin will go ahead with a complete cut-off of gas supplies to Europe.

This is a breaking news story and will be updated shortly.

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European Union proposes plan to cut gas use with Russia cutoff ‘likely’

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BRUSSELS — The European Union proposed a plan on Wednesday to ration natural gas as it braces for the “likely scenario” that Russia could cut off the flow to Europe.

European Commission President Ursula von der Leyen outlined a proposal for countries to cut gas demand by 15 percent from August until March next year to buffet the energy crisis on the continent.

Fears of more prices hikes and shortages leaving households cold next winter have grown as gas supplies from Russia slowed substantially. European officials accuse the Kremlin of retaliating to Western sanctions over the invasion of Ukraine.

“Russia is blackmailing us. Russia is using energy as a weapon. And therefore, in any event, whether it is partial, major cut off Russian, or total cut off Russian gas, Europe needs to be ready,” Von der Leyen told a news conference in Brussels.

“We have to prepare for a potential full disruption of Russian gas,” she added. “And this is a likely scenario.”

Amid summer heat wave, Germany worries over having enough gas for winter

The fallout from Russia’s war in Ukraine has highlighted European dependence on Russian energy.

In a summer of record heat, the 27-nation bloc is now scrambling to store supplies ahead of the winter in case Moscow turns off the tap.

Wednesday’s proposal — the European Gas Demand Reduction Plan — asks governments to switch from gas to alternative fuels, incentivizes industries to curb consumption and lists ways for consumers to save on heating and cooling. The plan, which requires approval from a majority of member states, would allow the Commission, the E.U. executive branch, to regulate energy cuts.

“Energy saved in summer is energy available for winter,” read an announcement on the new proposal and legislation.

Russia’s Gazprom sends force majeure letter to European clients

Facing the risk of disruptions, Germany has been making contingency plans amid worries that Moscow may not reconnect the Nord Stream 1 pipeline at the end of scheduled maintenance on Thursday. Russian President Vladimir Putin suggested this week that gas supply through the pipeline would resume but at curbed capacity.

Reduced deliveries were already affecting almost half the countries in the bloc, according to Von der Leyen.

“Overall the flow of Russian gas is now less than one third what it used to be at the same time last year,” she said as she urged households, public offices, industries to start rationing.

Francis reported from London.

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