TBILISI/LONDON, Sept 30 (Reuters) – Russia’s top spy said on Friday that Moscow had intelligence indicating that the West was behind what he said was a “terrorist act” against the Nord Stream gas pipelines under the Baltic Sea.
A sharp drop in pressure on both pipelines was registered on Sept. 26 and seismologists detected explosions, triggering a wave of speculation about who might have sabotaged one of Russia’s most important energy corridors.
The European Union said it suspected sabotage caused the damage to the Gazprom-led (GAZP.MM) Nord Stream 1 and 2 pipelines in Swedish and Danish waters. The White House has dismissed Russian allegations it was behind the incidents.
Register now for FREE unlimited access to Reuters.com
“We have materials that point to a Western trace in the organisation and implementation of these terrorist acts,” Sergei Naryshkin, the director of Russia’s Foreign Intelligence Service (SVR), was shown telling reporters on state television.
The spy chief’s remarks are the most direct public accusation against the West from a senior Russian official. He did not say what evidence Russia had, but said the West was trying to obscure who carried out the attack.
“The West is doing everything to hide the true perpetrators and organizers of this international terrorist act,” Naryshkin said. The SVR is the direct successor to the once mighty First Chief Directorate of the Soviet-era KGB.
President Vladimir Putin on Thursday said the “unprecedented sabotage” against the Nord Stream gas pipelines was “an act of international terrorism.” read more
The Kremlin declined to comment on Naryshkin’s remarks but said there needed to be a thorough international investigation into the incidents.
Sweden’s energy minister said on Friday it was “very likely” that the attack on the pipelines was done on purpose by a state actor.
Since the ruptures were first detected earlier this week, officials in Moscow have hinted that the West, led by the U.S., could be behind the attack. On Thursday, Russian Foreign Ministry spokeswoman Maria Zakharova said Washington stood to gain from the pipelines being disrupted.
Neither Nord Stream 1 or 2 were in operation when the ruptures were discovered on Monday, but both contained gas. Nord Stream AG, the operator for the Nord Stream 1 pipeline, said it expects the gas leak to stop by Monday, but that it has not been able to access the area to assess the damage.
Register now for FREE unlimited access to Reuters.com
Reporting by Reuters; editing by Guy Faulconbridge
Our Standards: The Thomson Reuters Trust Principles.
Kremlin says damage to pipelines looks like ‘terrorism’
EU official says leaks change nature of Ukraine conflict
European officials say Russian ships seen nearby -CNN
MOSCOW/BRUSSELS, Sept 29 (Reuters) – Russia said on Thursday that leaks spewing gas into the Baltic Sea from pipelines to Germany appeared to be the result of state-sponsored “terrorism”, as an EU official said the incident had fundamentally changed the nature of the conflict in Ukraine.
The European Union is investigating the cause of the leaks in the Gazprom-led (GAZP.MM) Nord Stream 1 and 2 pipelines and has said it suspects sabotage was behind the damage off the coasts of Denmark and Sweden.
Four days after the leaks were first spotted, it remains unclear who might be behind any attack on the pipelines that Russia and European partners spent billions of dollars building.
Register now for FREE unlimited access to Reuters.com
“This looks like an act of terrorism, possibly on a state level,” Kremlin spokesman Dmitry Peskov said, adding: “It is very difficult to imagine that such an act of a terrorism could have happened without the involvement of a state of some kind”.
Russia also said the United States stood to benefit, in a war of words with the West over who was responsible. Moscow has previously said the leaks occurred in territory that is “fully under the control” of U.S. intelligence agencies.
Russia’s Foreign Ministry spokeswoman Maria Zakharova told a news briefing Washington would be able to boost its liquefied natural gas (LNG) sales if the pipelines were put out of use.
But U.S. news channel CNN, citing three sources, reported that European security officials had observed Russian navy support ships and submarines not far from the leaks.
Asked to comment on the CNN report, Peskov said there had been a much larger NATO presence in the area.
Zakharova called for an EU investigation to be “objective”, and said Washington would have to “explain itself” – a reference to President Joe Biden’s comment in February that, if Russia invaded Ukraine, “there will no longer be a Nord Stream 2”.
The White House has dismissed Russian allegations that it was responsible for the damage to Nord Stream and Biden’s comments were referring to efforts at the time to secure certification to bring Nord Stream 2 into commercial use.
Leaks from the Nord Stream 1 pipeline are likely to be stopped on Monday, the pipeline’s operator told Reuters.
But the spokesperson for Nord Stream AG said it was not possible to give any forecasts for the pipeline’s future operation until the damage had been assessed.
A gas leak from Nord stream 1 is seen in the Swedish economic zone in the Baltic Sea in this picture taken from the Swedish Coast Guard aircraft on September 28, 2022. Swedish Coast Guard/Handout via TT News Agency/via REUTERS
Russia had halted deliveries via Nord Stream 1, saying Western sanctions had hampered operations.
While neither pipeline was supplying gas to Europe when the leaks were first detected, both had gas in them.
European leaders and Moscow say they can not rule out sabotage. Map of Nord Stream pipelines and locations of reported leaks
‘ROBUST RESPONSE’
EU leaders will discuss the ramifications of the damage next week at a summit in Prague, an EU official said.
“The strategic infrastructure in the entire EU has to be protected,” the EU official in Brussels said.
“This changes fundamentally the nature of the conflict as we have seen it so far, just like the mobilisation … and the possible annexation,” the EU official said, referring to Russia’s mobilising of more troops for the war and expectations President Vladimir Putin will annex Ukrainian regions.
Russia’s war with Ukraine and the resulting energy standoff between Moscow and Europe, which has left the EU scrambling to find alternative gas supplies, are set to dominate the EU summit on Oct. 7.
The European Union on Wednesday warned of a “robust and united response” should there be more attacks and stressed the need to protect its energy infrastructure, but EU officials have avoided pointing a figure directly at possible perpetrators.
Next week, EU leaders will discuss an eighth sanctions package on Russia which European Commission chief Ursula von der Leyen has proposed, including tighter trade restrictions, more blacklistings and an oil price cap for third countries.
The EU official said he expected the 27-nation bloc to agree parts of the sanctions package before the summit, such as the blacklisting of additional individuals and some of the trade restrictions with regard to steel and technology.
Other topics such as the oil price cap or the sanctioning of banks may not be solved before the summit, he added.
EU states need unanimity to impose sanctions and Hungary’s prime minister Viktor Orban has been a vocal critic, saying sanctions have “backfired”, driving up energy prices and dealing a blow to European economies.
Register now for FREE unlimited access to Reuters.com
Writing by Alexander Smith; Editing by Elaine Hardcastle and Edmund Blair
Our Standards: The Thomson Reuters Trust Principles.
OSLO, Sept 29 (Reuters) – Sweden’s coast guard discovered a fourth gas leak on the damaged Nord Stream pipelines earlier this week, a spokesperson told the Svenska Dagbladet newspaper.
The European Union suspects sabotage was behind the gas leaks on the subsea Russian pipelines to Europe and has promised a “robust” response to any intentional disruption of its energy infrastructure.
“Two of these four are in Sweden’s exclusive economic zone,” coast guard spokesperson Jenny Larsson told the paper late on Wednesday. The other two breaches are in the Danish exclusive economic zone.
Register now for FREE unlimited access to Reuters.com
The coast guard did not immediately respond to a Reuters request for comment on Thursday.
While neither pipeline was in use at the time of the suspected blasts, they were filled with gas that has been spewing out in the Baltic Sea since Monday’s ruptures.
The fourth leak was on the Nord Stream 2 pipeline, in close proximity to a larger hole found on the nearby Nord Stream 1, the Swedish coast guard said.
This week, Danish authorities reported one hole in each of the two pipeline sections in their waters.
Register now for FREE unlimited access to Reuters.com
Reporting by Terje Solsvik; Editing by Stine Jacobsen and Clarence Fernandez
Our Standards: The Thomson Reuters Trust Principles.
Polish PM blames sabotage, without citing evidence
Russia say leaks threaten Europe’s energy security
Footage shows gas bubbles churning sea surface
Operator says damage to Nord Stream 1 ‘unprecedented’
Crisis over Russian gas has sent prices soaring
STOCKHOLM/COPENHAGEN, Sept 27 (Reuters) – Europe was investigating major leaks in two Russian pipelines that spewed gas into the Baltic Sea on Tuesday as Sweden launched a preliminary probe into possible sabotage to infrastructure at the centre of an energy standoff.
But it remained far from clear who might be behind any foul play, if proven, on the Nord Stream pipelines that Russia and European partners spent billions of dollars building.
“We have established a report and the crime classification is gross sabotage,” a Swedish national police spokesperson said.
Register now for FREE unlimited access to Reuters.com
Poland’s prime minister blamed sabotage for the leaks, without citing evidence. The Danish premier said it could not be ruled out.
Russia, which slashed gas deliveries to Europe after the West imposed sanctions over Moscow’s invasion of Ukraine, also said sabotage was a possibility and that the leaks undermined the continent’s energy security.
A senior Ukrainian official, meanwhile, called the incident a Russian attack to destabilise Europe, without giving proof.
“We see clearly that it’s an act of sabotage, related to the next step of escalation of the situation in Ukraine,” Polish Prime Minister Mateusz Morawiecki said at the opening of a new pipeline between Norway and Poland.
Seismologists in Denmark and Sweden registered powerful blasts in the vicinity of the leaks on Monday, Sweden’s National Seismology Centre told public broadcaster SVT. German geological research centre GFZ also said a seismograph on the Danish island of Bornholm had twice recorded spikes on Monday.
The Nord Stream pipelines have been flashpoints in an escalating energy war between capitals in Europe and Moscow that has damaged major Western economies, sent gas prices soaring and sparked a hunt for alternative supplies.
Denmark’s armed forces on Tuesday released a video showing bubbles boiling up to the surface of the sea. The largest gas leak had caused a surface disturbance of well over 1 km (0.6 mile) in diameter, the armed forces said. read more
Sweden’s Maritime Authority issued a warning about two leaks in the Nord Stream 1 pipeline the day after a leak on the nearby Nord Stream 2 pipeline was discovered that prompted Denmark to restrict shipping and impose a small no fly zone.
European leaders and Moscow say they can not rule out sabotage. Map of Nord Stream pipelines and locations of reported leaks
‘RISK OF EXPLOSIONS’
The leaks were very large and it could take perhaps a week for gas to stop draining out of the Nord Stream 2 pipeline, the head of Denmark’s Energy Agency Kristoffer Bottzauw said.
Ships could lose buoyancy if they entered the area.
“The sea surface is full of methane, which means there is an increased risk of explosions in the area,” Bottzauw said.
Gas bubbles from the Nord Stream 2 leak reaching surface of the Baltic Sea in the area shows disturbance of well over one kilometre diameter near Bornholm, Denmark, September 27, 2022. Danish Defence Command/Handout via REUTERS
Danish Prime Minister Mette Frederiksen said sabotage could not be ruled out. “We are talking about three leaks with some distance between them, and that’s why it is hard to imagine that it is a coincidence,” she said.
Kremlin spokesperson Dmitry Peskov called it “very concerning news. Indeed, we are talking about some damage of an unclear nature to the pipeline in Denmark’s economic zone.” He said it affected the continent’s energy security.
Neither pipeline was pumping gas to Europe at the time the leaks were found amid the dispute over the war in Ukraine, but the incidents will scupper any remaining expectations that Europe could receive gas via Nord Stream 1 before winter.
Operator Nord Stream said the damage was “unprecedented”.
Both pipelines contained gas although they were not in operation.
Gazprom (GAZP.MM), the Kremlin-controlled company with a monopoly on Russian gas exports by pipeline, declined comment.
“There are some indications that it is deliberate damage,” said a European security source, while adding it was still too early to draw conclusions. “You have to ask: Who would profit?”
CUTTING SUPPLIES
Russia reduced gas supplies to Europe via Nord Stream 1 before suspending flows altogether in August, blaming Western sanctions for causing technical difficulties. European politicians say that was a pretext to stop supplying gas.
The new Nord Stream 2 pipeline had yet to enter commercial operations. The plan to use it to supply gas was scrapped by Germany days before Russia sent troops into Ukraine, in what Moscow calls a “special military operation”, in February.
“The multiple undersea leaks mean neither pipeline will likely deliver any gas to the EU over the coming winter, irrespective of political developments in the Ukraine war,” Eurasia Group wrote in a note.
European gas prices rose on the news, with the benchmark October Dutch price climbing almost 10% on Tuesday. Prices are still below this year’s peaks but remain more than 200% higher than in early September 2021.
Norway’s Petroleum Safety Authority (PSA) had urged oil companies on Monday to be vigilant about unidentified drones seen flying near Norwegian offshore oil and gas platforms, warning of possible attacks.
The Swedish Maritime Administration (SMA) said two leaks on Nord Stream 1, one in the Swedish economic zone and another in the Danish zone, were northeast of Denmark’s Bornholm.
“We are keeping extra watch to make sure no ship comes too close to the site,” an SMA spokesperson said.
The Danish authorities asked that the level of preparedness in Denmark’s power and gas sector be raised after the leaks, a step that would require heightened safety procedures for power installations and facilities.
Register now for FREE unlimited access to Reuters.com
Reporting by Reuters bureaus; Writing by Matthias Williams, Jan Harvey and Alexander Smith; Editing by Edmund Blair and Emelia Sithole-Matarise
Our Standards: The Thomson Reuters Trust Principles.
Register now for FREE unlimited access to Reuters.com
BERLIN, Sept 26 (Reuters) – The Danish authorities on Monday asked ships to steer clear of a five nautical mile radius off the island of Bornholm after a gas leak overnight from the defunct Russian-owned Nord Stream 2 pipeline drained into the Baltic Sea.
The German government said it was in contact with the Danish authorities and working with local law enforcement to find out what caused pressure in the pipeline to plummet suddenly. Denmark’s energy ministry declined to comment.
The pipeline has been one of the flashpoints in an escalating energy war between Europe and Moscow since Russia’s invasion of Ukraine in February that has pummelled major Western economies and sent gas prices soaring.
Register now for FREE unlimited access to Reuters.com
“A leak today occurred on the Nord Stream 2 pipeline in the Danish area,” said Denmark’s energy agency in a statement.
Danish maritime authorities had issued a navigation warning and established a zone around the pipeline “as it is dangerous for ship traffic”, it added.
Nord Stream 2’s operator said pressure in the pipeline, which had contained some gas sealed inside despite never becoming operational, dropped from 105 to 7 bars overnight.
The pipeline, which was intended to double the volume of gas flowing from St. Petersburg under the Baltic Sea to Germany, had just been completed and filled with 300 million cubic metres of gas when Germany cancelled it days before the invasion.
“Overnight the Nord Stream 2 landfall dispatcher registered a rapid gas pressure drop on Line A of the Nord Stream 2 natural gas pipeline,” Nord Stream 2’s operator said in a statement.
“Investigation is ongoing.”
NO CLARITY
European countries have resisted Russian calls to allow the Nord Stream 2 pipeline to operate and accused Moscow of using energy as a weapon. Russia denies doing so and blames the West for gas shortages.
“We are currently in contact with the authorities concerned in order to clarify the situation. We still have no clarity about the causes and the exact facts,” said a statement from the German economy ministry.
The Swiss-based operator, which has legally been wound up, said it had informed all relevant authorities about the leak.
Russian gas exporter Gazprom (GAZP.MM) referred questions about the incident to the Nord Stream 2 operator.
Russia has cut off gas supplies to several countries and also halted flows through the Nord Stream 1 pipeline, blaming Western sanctions for hindering operations.
President Vladimir Putin in September chided the West for keeping Nord Stream 2 shut. read more
Monday’s gas leak happened a day before the ceremonial launch of the Baltic Pipe carrying gas from Norway to Poland.
The project is a centrepiece of Warsaw’s efforts to diversify from Russian gas. Danish Prime Minister Mette Frederiksen is due to travel to Poland on Tuesday to mark the occasion.
Nord Stream 2 was widely unpopular among Danish lawmakers and the country in 2017 passed a law which allowed it to ban the project from passing through its territorial waters on security grounds.
But Nord Stream 2 later changed the original route to steer it through Denmark’s exclusive economic zone, where this veto could not be applied.
Register now for FREE unlimited access to Reuters.com
Reporting by Thomas Escritt, Christian Kraemer, Stine Jacobsen, Terje Solsvik, Marek Strzelecki and Matthias Williams; Writing by Matthias Williams; Editing by Andrea Ricci and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
Thomas Escritt
Thomson Reuters
Berlin correspondent who has investigated anti-vaxxers and COVID treatment practices, reported on refugee camps and covered warlords’ trials in The Hague. Earlier, he covered Eastern Europe for the Financial Times. He speaks Hungarian, German, French and Dutch.
Spain may shut energy-intensive industries at peak times
France prepares to send gas to Germany in October
Germany to sign LNG contracts in UAE
Berlin still working on Uniper bailout
BERLIN/LISBON, Sept 19 (Reuters) – Germany was pressing on Monday to secure liquefied natural gas contracts with Gulf producers and other European states outlined measures to conserve energy, with Russian flows running at severely reduced levels as winter approaches.
Berlin said it aimed to sign LNG contracts in the United Arab Emirates to supply terminals it is building, now that the vital Nord Stream 1 gas pipeline from Russia is shut, while Spain, France others outlined contingency planning to try to avoid power cuts. read more
“If everything goes well, savings in Germany are high and we have a bit of luck with the weather, we … have a chance at getting through the winter comfortably,” Economy Minister Robert Habeck said after a tour of a future LNG terminal in northern Germany. read more
Register now for FREE unlimited access to Reuters.com
The sharp drop supplies from Russia, which previously supplied about 40% of the European Union’s gas needs, has left governments scrambling to find alternative energy resources and has prompted fears of possible power cuts and a recession.
Russia has blamed Western sanctions imposed on Moscow for its invasion of Ukraine for hampering pipeline deliveries. European politicians say Moscow is using energy as weapon.
Germany’s RWE (RWEG.DE) said it was “in good and constructive talks” with Qatar about LNG deliveries, before a planned visit by Chancellor Olaf Scholz to the Gulf. Ailing importer Uniper (UN01.DE) said it had not reached a deal yet.
Germany will also be able to count on gas flowing from France from around Oct. 10, the head of France’s CRE energy regulator said, following an announcement by President Emmanuel Macron that the two would help each other with energy supplies.
Although deliveries via the Nord Stream 1 have halted, Russian gas flows to Europe via Ukraine, although much reduced, have continued.
In France, CRE chief Emmanuelle Wargon said that if energy group EDF’s race to repair corrosion-hit nuclear reactors suffers delays, “exceptional” measures this winter could include localised electricity cuts. read more
“But there will be no gas cuts for households. Never,” she told franceinfo broadcaster.
‘DIFFICULT WINTER’
Across the Pyrenees, Spanish Industry Minister Reyes Maroto said obliging energy-intensive companies to close during consumption peaks was an option this winter if required.
The companies would be compensated financially, she said in an interview with Spanish news agency Europa Press, adding there was no need to impose such closures now.
And Finns were warned by national grid operator Fingrid that they should be prepared for power outages. read more
Reflecting the disruptions caused across the continent, Finnish power retailer Karhu Voima Oy said it had filed for bankruptcy due to a sharp rise in electricity prices.
Meanwhile in Germany, Habeck said Berlin will not let large gas importers like VNG become insolvent, while an economy ministry spokesperson said “focused” discussions on aid were ongoing with ailing importer Uniper (UN01.DE). read more
Pipes at the landfall facilities of the Nord Stream 1 gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke
The German economy is contracting already and will likely get worse over the winter months as gas consumption is cut or rationed, the country’s central bank said on Monday.
In Portugal, the government was blunt about its concerns.
“From one day to another, we may have a problem, such as not being supplied the volume of gas that is planned,” environment and energy minister Duarte Cordeiro said, adding that Portugal was working to diversify its supplies to boost energy security.
“Portugal has been preparing, like all of Europe, for what will be a difficult winter,” he said, urging the European Commission to move forward with plans for a joint EU gas purchasing platform and defining import prices. read more
NORD STREAM 1 REQUESTS
Russia, which had supplied about 40% of the European Union’s gas before its February invasion of Ukraine, has said it closed Nord Stream 1 because Western sanctions hindered operations. European politicians say that is a pretext and accuse Moscow of using energy as a weapon.
German buyers briefly reserved capacity on Monday to receive Russian gas via the Nord Stream 1 pipeline, once one of Europe’s major gas supply routes, for the first time since the line was shut three weeks ago. But they soon dropped the requests.
It was not immediately clear why buyers had submitted requests for capacity when Russia has given no indication since it shut the line that it would restart any time soon. read more
Meanwhile, Ukraine accused Russian forces of shelling near the Pivdennoukrainsk nuclear power plant in Ukraine’s southern Mykolaiv region. read more
Since its forces were driven out of Kharkiv, Russia has repeatedly fired at power plants, water infrastructure and other civilian targets in what Ukraine says is retaliation for defeats on the ground. Moscow denies deliberately targeting civilians. read more
‘GOING BACK IN TIME’
European gas storages are now 85.6% full, with stocks in Germany close to 90%, data from Gas Infrastructure Europe showed.
“Stocks are set to continue to be built further, supported by the finalisation of planned maintenance work and increasing Norwegian flows as of this week,” analysts at Energi Danmark said in a morning note.
Europe’s imports of thermal coal in 2022 could be the highest in at least four years, analysts said.
“Europe is going back in time,” Rodrigo Echeverri, head of research at Noble Resources, told a conference.
Oil prices fell by more than 2% on Monday, pressured by expectations of weaker global demand and by U.S. dollar strength ahead of a potentially large interest rate hike, though supply worries limited the decline. read more
Register now for FREE unlimited access to Reuters.com
Reporting by Reuters bureaus; Writing by Ingrid Melander; Editing by Edmund Blair, Mark Heinrich, Hugh Lawson and David Evans
Our Standards: The Thomson Reuters Trust Principles.
Register now for FREE unlimited access to Reuters.com
SAMARKAND, Uzbekistan, Sept 16 (Reuters) – President Vladimir Putin on Friday denied Russia had anything to do with Europe’s energy crisis, saying that if the European Union wanted more gas it should lift sanctions preventing the opening of the Nord Stream 2 pipeline.
Speaking to reporters after the Shanghai Cooperation Organisation summit in Uzbekistan, Putin blamed what he called “the green agenda” for the energy crisis, and insisted that Russia would fulfil its energy obligations.
“The bottom line is, if you have an urge, if it’s so hard for you, just lift the sanctions on Nord Stream 2, which is 55 billion cubic metres of gas per year, just push the button and everything will get going,” Putin said.
Register now for FREE unlimited access to Reuters.com
Nord Stream 2, which lays on the bed of the Baltic Sea almost in parallel to Nord Stream 1, was built a year ago, but Germany decided not to proceed with it just days before Russia sent its troops into Ukraine on Feb. 24.
Russian President Vladimir Putin speaks during a news conference following the Shanghai Cooperation Organization (SCO) summit in Samarkand, Uzbekistan September 16, 2022. Sputnik/Sergey Bobylev/Pool via REUTERS
European gas prices more than doubled from the start of the year amid a decline in Russian supplies.
This year’s price surge has squeezed struggling already consumers and forced some industries to halt production.
Europe has accused Russia of weaponising energy supplies in retaliation for Western sanctions imposed on Moscow over its invasion of Ukraine. Russia says the West has launched an economic war and sanctions have hampered Nord Stream 1 pipeline operations.
Russia has cut off gas supplies to several countries, includingBulgaria and Poland, because they refused to pay in roubles rather than the currency of the contract.
Russian gas giant Gazprom (GAZP.MM) also said earlier this month the Nord Stream 1 pipeline, Europe’s major supply route, would remain shut as a turbine at a compressor station had an engine oil leak, sending wholesale gas prices soaring. read more
Register now for FREE unlimited access to Reuters.com
Reporting by Reuters; Editing by Kevin Liffey/Guy Faulconbridge
Our Standards: The Thomson Reuters Trust Principles.
Register now for FREE unlimited access to Reuters.com
Germany plans to expand lending to energy firms
EU securities watchdog mulling EU-wide measures
Commission to announce broader plans on Wednesday
BERLIN/FRANKFURT, Sept 13 (Reuters) – Germany will step up lending to energy firms at risk of being crushed by soaring gas prices, it said Tuesday, as Europe readied proposals to help households and industry cope with an energy crisis.
The European Commission will on Wednesday announce targets to cut electricity consumption and a revenue cap for non-gas fuelled plants. Energy ministers will hold an emergency meeting on Sept. 30 to discuss them. read more
Separately, the EU’s securities watchdog is considering measures to help energy firms struggling to meet rocketing collateral demands. Firms were caught out by surging prices after Russia cut gas supplies to Europe to counter Western sanctions following Moscow’s invasion of Ukraine. read more
Register now for FREE unlimited access to Reuters.com
The crisis is weighing heavily on Europe’s economy, even before winter when industrial users could face rationing if gas reserves prove inadequate. Industry sentiment in the bloc’s economic powerhouse, Germany, has tumbled.
“Of course we knew, and we know, that our solidarity with Ukraine will have consequences,” German Chancellor Olaf Scholz said on Tuesday. He urged Germans to brace for a tough winter as its energy supply shifts from Russian gas. read more
Under pressure utilities are in line for further state aid.
Germany’s finance ministry wants to boost state loans for energy firms using facilities set up to offer relief during the COVID-19 pandemic, it said. The German cabinet is expected to approve draft legislation on Wednesday. The loan guarantees could amount to 67 billion euros ($68 billion). read more
Last week, VNG, one of Germany’s biggest importers of Russian natural gas, became the latest energy firm to ask the government for aid.
Uniper (UN01.DE), the country’s largest importer of Russian gas, was bailed out in July. It is weighing legal action in Sweden to claim billions of euros in compensation from Russia’s Gazprom (GAZP.MM), Reuters reported on Tuesday. read more
RAFT OF EU PROPOSALS
Companies may also benefit from an easing of regulations.
The European Securities and Markets Authority (ESMA) is “actively considering” whether any regulatory measures are necessary to help support energy firms, a spokesperson said on Monday. read more
ESMA regulates clearing houses in the EU, which in turn set minimum levels of collateral based on risks from markets and counterparties. Public intervention in this area is rare, especially after the global financial crisis over a decade ago led to tougher margin requirements.
A draft of the European Commission’s proposals, seen by Reuters, would cap at 180 euros per megawatt hour the price at which wind, solar and nuclear plants could sell their power in the 27-nation bloc. It would also force fossil fuel firms to share excess profits. read more
Governments would be required to use the cash to help consumers and companies facing sky-high energy bills.
EU officials said, however, that plans for emergency liquidity support for power firms facing soaring collateral needs were still being drafted, and would likely be published later than Wednesday.
NO GAS PRICE CAP
Diplomats say there is broad support for a revenue cap for non-gas generators, as well as plans to impose electricity demand cuts. But countries are split over other ideas – including a gas price cap.
The EU has also backed away from an earlier plan to impose a price cap on Russian gas. Countries including Hungary and Austria had opposed that idea in case Moscow retaliated by cutting off the supplies it still sends to the EU.
Meanwhile, investor sentiment in Germany deteriorated more than expected in September as concerns over its energy supply weighed on the outlook for Europe’s largest economy. read more
“The prospect of energy shortages in winter has made expectations even more negative for large parts of the German industry,” said Achim Wambach, president of the ZEW economic research institute.
Register now for FREE unlimited access to Reuters.com
Additional reporting by Kate Abnett in Brussels and Andreas Rinke in Berlin; Writing by Ingrid Melander;
Editing by Mark Potter, Matt Scuffham and Mark Heinrich
Our Standards: The Thomson Reuters Trust Principles.
Register now for FREE unlimited access to Reuters.com
WASHINGTON, Sept 6 (Reuters) – The U.S. Environmental Protection Agency (EPA) said on Tuesday it has denied a request from leading liquefied natural gas (LNG) exporter Cheniere Energy Inc (LNG.A) to exempt turbines at its two U.S. Gulf Coast terminals from a hazardous pollution rule.
The rejection raises questions about whether the Texas-based company will have to reduce exports of the supercooled fuel to install new pollution control equipment at its facilities at a time that Europe is depending on increased shipments of LNG from the United States to offset cuts from Russia.
Europe is facing its worst-ever gas supply crisis, with energy prices soaring and German importers discussing possible rationing in the European Union’s biggest economy after Russia reduced gas flows westward. Moscow has cited a pipeline fault for the halt, but Europe sees it as apparent retribution for Western sanctions imposed on Russia for its invasion of Ukraine.
Register now for FREE unlimited access to Reuters.com
“Though EPA is denying Cheniere’s request for a special subcategory to comply with the turbines rule, the Agency will continue to work with them and with other companies as needed to assure they meet Clean Air Act obligations,” EPA spokesperson Tim Carroll said in an email.
Owners and operators of gas turbines had a Sept. 5 deadline to comply with the National Emission Standards for Hazardous Air Pollutants (NESHAP), which the administration of President Joe Biden put into effect after an 18-year stay.
The rule imposes curbs on emissions of known carcinogens like formaldehyde and benzene from stationary combustion turbines, like those used by LNG facilities.
Cheniere had asked the Biden administration to exempt a specific kind of turbine that it installed at its LNG terminals from the NESHAP limits, arguing they would reduce shipments from the top U.S. exporter for an extended period and endanger the country’s efforts to ramp up supplies to Europe. read more
Cheniere was the only company to request such an exemption, according to the EPA. The company claimed the model of turbine it uses at its Texas and Louisiana facilities is the best technology for withstanding the types of storms that often strike the Gulf Coast, but that the equipment is also exceptionally hard to retrofit, and that engineering and installation of pollution controls could take years.
Cheniere spokesperson Eben Burnham-Snyder said that while the company “strongly disagrees” with the EPA’s decision, “we will work with our state and federal regulators to develop solutions that ensure compliance.”
He said the decision may result in “unwarranted expenditures” but added that coming into full compliance will not result in a material financial or operational impact and will not affect its ability to supply LNG to customers and countries around the world.
Gas-powered turbines emit formaldehyde and other dangerous pollutants through a chemical transformation that occurs when methane, the main ingredient in natural gas, is superheated.
Around 250 U.S. gas turbines are subject to the new rule, according to an EPA list, nearly a quarter of them Cheniere’s.
The Houston-based company accounts for around 50% of U.S. shipments of LNG abroad.
Ilan Levin, associate director of the Environmental Integrity Project, said the decision by EPA to deny Cheniere’s request was not a surprise because it had warned the company that it needed to meet the standard for years.
Reuters reported last month that the EPA had questioned Cheniere’s selection of gas turbines without adding pollution controls in 2011 and again in 2013. read more
“We applaud the EPA for enforcing the law and making sure the people living near these plants in the coastal bend and southeast Texas/southwest Louisiana get the same clean air protections as everybody else,” he said.
Cheniere shares closed 2.3% lower at $158.58 on Tuesday.
Register now for FREE unlimited access to Reuters.com
Reporting by Valerie Volcovici in Washington and Nichola Groom in Los Angeles; Editing by Jonathan Oatis, Matthew Lewis and Himani Sarkar
Our Standards: The Thomson Reuters Trust Principles.
Register now for FREE unlimited access to Reuters.com
Gazprom says ball is in Siemens Energy’s court
Siemens Energy: we don’t understand Gazprom
Siemens Energy: not commissioned to do maintenance
Germany discussing energy rationing
Russia: We’ll send our oil to Asia
VLADIVOSTOK, Russia, Sept 6 (Reuters) – Russia’s biggest natural gas pipeline to Europe will not resume pumping until Siemens Energy (ENR1n.DE) repairs faulty equipment, Gazprom’s (GAZP.MM) Deputy Chief Executive Vitaly Markelov told Reuters on Tuesday.
Europe is facing its worst gas supply crisis ever, with energy prices soaring and German importers even discussing possible rationing in the European Union’s biggest economy after Russia reduced flows westwards.
Gazprom (GAZP.MM) on Friday said the Nord Stream 1 pipeline, Europe’s major supply route, would remain shut as a turbine at a compressor station had an engine oil leak, sending wholesale gas prices soaring. read more
Register now for FREE unlimited access to Reuters.com
When asked when Nord Stream 1 would start pumping gas again, Markelov told Reuters on the sidelines of the Eastern Economic Forum in the Russian Pacific port of Vladivostok: “You should ask Siemens. They have to repair equipment first.”
Siemens Energy said it was not currently commissioned by Gazprom to do maintenance work on the turbine with the suspected engine oil leak, but was on standby.
The company, headquartered in Munich, Germany, said on Tuesday that it did not comprehend Gazprom’s presentation of the situation.
It said an engine oil leak at the last remaining turbine in operation at the Portovaya compressor station did not constitute a reason to keep the pipeline closed. read more
“We cannot comprehend this new representation based on the information provided to us over the weekend,” Siemens Energy said in a written statement.
“Our assessment is that the finding communicated to us does not represent a technical reason for stopping operation. Such leaks do not normally affect the operation of a turbine and can be sealed on site,” it added.
Pipes at the landfall facilities of the ‘Nord Stream 1’ gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke//File Photo
ENERGY WAR?
The Kremlin blames the energy crisis on sanctions imposed on Russia by the West over what President Vladimir Putin calls its “special military operation” in Ukraine. European leaders say Moscow is using energy to blackmail the EU.
Nord Stream 1, which runs under the Baltic Sea to Germany, is by far the biggest Russian gas pipeline to Europe, carrying up to 59.2 billion cubic metres of gas per year.
Once considered a symbol of the cooperation between one of the world’s biggest energy powers and the world’s fourth largest economy, Nord Stream has now become the subject of recriminations between Berlin and Moscow.
Germany, the biggest European purchaser of Russian energy, says Russia is no longer a reliable supplier. EU politicians say Putin is using his clout as the head of one of the world’s biggest energy powers to stoke discord in Europe over the conflict in Ukraine.
Germany dismisses Gazprom’s explanations about turbine issues as a pretext.
But the Kremlin says that the West triggered the energy crisis by imposing the most severe sanctions in modern history, a step Putin says is akin to a declaration of economic war.
The Kremlin also warned that Russia would retaliate over a G7 proposal to impose a price cap on Russian oil, a step that is unlikely to hurt Russia unless China and India were to follow suit.
Russian Energy Minister Nikolai Shulginov said on Tuesday in Vladivostok that Russia will respond to the price cap by shipping more oil to Asia. He said Russia and its partners were considering setting up an insurer to facilitate the oil trade. read more
Register now for FREE unlimited access to Reuters.com
Reporting by Vladimir Soldatkin; Editing by Guy Faulconbridge and Jan Harvey
Our Standards: The Thomson Reuters Trust Principles.