MOSCOW: Russian President Vladimir Putin said Wednesday that Moscow is ready to resume gas supplies to Europe via a link of the Germany-bound Nord Stream 2 pipeline under the Baltic Sea.
Speaking at a Moscow energy forum, Putin again charged that the US was likely behind the explosions that ripped through both links of the Nord Stream 1 pipeline and one of the two links of the Nord Stream 2 pipeline, causing a massive gas leak and taking them out of service.
The US has previously rejected similar allegations by Putin. Several European governments said the undersea explosions that ripped through both Nord Stream pipelines were likely caused by sabotage but stopped short of assigning blame.
The Russian leader has repeatedly taunted the West by raising the prospect of sending gas through Nord Stream 2, a political nonstarter for the German government and others.
Reaffirming a claim that he made last week, Putin said that the attack on the pipelines was launched by those who wanted to weaken Europe by halting the flow of cheap gas from Russia.
“The act of sabotage of the Nord Stream 1 and 2 is an act of international terrorism aimed at undermining energy security of the entire continent by blocking supplies of cheap energy,” he said, alleging that the US wants to force Europe to switch to importing more expensive liquefied natural gas.
“Those who want to rupture ties between Russia and the EU are behind the acts of sabotage on the Nord Stream,” he said.
While Russia is still pumping gas to Europe via Ukraine, the explosions on the Baltic pipelines have exacerbated acute energy shortages faced by Europe before the winter season.
The Nord Stream 2 pipeline has never brought natural gas to Europe because Germany prevented the flows from ever starting just before Russia launched military action in Ukraine on Feb. 24.
Before the explosions, Russia had cut off the parallel Nord Stream 1 pipeline at the center of an energy standoff with Europe. Russia has blamed technical problems for the stoppage, but European leaders call it an attempt to divide them over their support for Ukraine.
Plunging Russian gas supplies have caused prices to soar, driving inflation, pressuring governments to help ease the pain of sky-high energy bills for households and businesses and raising fears of rationing and recession.
Putin said that one of the two links of the Nord Stream 2 has remained pressurized and appears to be ready for service, adding that its capacity stands at 27 billion cubic meters a year. He noted that if checks prove that the pipeline is safe to operate, Russia stands ready to use it to pump gas to Europe.
The Russian leader also said that Russia could increase the capacity of its gas exports to Turkey and eventually turn into a hub for gas supplies to Europe.
Putin again scoffed at Western plans to cap prices for Russian energy exports, saying that “Russia won’t act against common sense and pay the other’s welfare.”
“We won’t supply energy to the countries that would cap the prices,” he said. “I would like to warn those, who instead of business partnership and market mechanisms try to use con tricks and blunt blackmail, that we won’t do anything to our own detriment.”
Putin says Russia could increase gas supplies to Europe
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Putin says Russia could increase gas supplies to Europe
- Several European governments said the undersea explosions that ripped through both Nord Stream pipelines were likely caused by sabotage
- The Russian leader also said that Russia could increase the capacity of its gas exports to Turkey
European gas prices soar almost 50% as Iran conflict halts Qatar LNG output
- Analysts warn prolonged disruption could push prices higher
- Some shipments of oil, LNG through Strait of Hormuz suspended
- Benchmark Asian LNG price up almost 39 percent
LONDON: Benchmark Dutch and British wholesale gas prices soared by almost 50 percent on Monday, after major liquefied natural gas exporter Qatar Energy said it had halted production due to attacks in the Middle East.
Qatar, soon to cement its role as the world’s second largest LNG exporter after the US, plays a major role in balancing both Asian and European markets’ demand of LNG.
Most tanker owners, oil majors and trading houses have suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz, trade sources said, after Tehran warned ships against moving through the waterway.
Europe has increased imports of LNG over the past few years as it seeks to phase out Russian gas following Russia’s invasion of Ukraine.
Around 20 percent of the world’s LNG transits through the Strait of Hormuz and a prolonged suspension or full closure would increase global competition for other sources of the gas, driving up prices internationally.
“Disruptions to LNG flows would reignite competition between Asia and Europe for available cargoes,” said Massimo Di Odoardo, vice president, gas and LNG research at Wood Mackenzie.
The Dutch front-month contract at the TTF hub, seen as a benchmark price for Europe, was up €14.56 at €46.52 per megawatt hour, or around $15.92/mmBtu, by 12:55 p.m. GMT, ICE data showed.
Prices were already some 25 percent higher earlier in the day but extended gains after QatarEnergy’s production halt.
Benchmark Asian LNG prices jumped almost 39 percent on Monday morning with the S&P Global Energy Japan-Korea-Marker, widely used as an Asian LNG benchmark, at $15.068 per million British thermal units, Platts data showed.
“If LNG/gas markets start to price in an extended period of losses to Qatari LNG supply, TTF could potentially spike to 80-100 euros/MWh ($28-35/mmBtu),” Warren Patterson, head of commodities strategy at ING, said. The British April contract was up 40.83 pence at 119.40 pence per therm, ICE data showed.
Europe is also relying on LNG imports to help fill its gas storage sites which have been depleted over the winter and are currently around 30 percent full, the latest data from Gas Infrastructure Europe showed. In the European carbon market, the benchmark contract was down €1.10 at €69.17 a tonne
