Gas price reacts sharply to disappointing Nord Stream pipeline deliveries

Russian gas shipments through the Nord Stream pipeline were cut from 40 to 20 percent of its capacity last week. Russia accuses Siemens of not repairing defects in necessary turbines, but Siemens disputes those reports. Earlier this month, Nord Stream did not supply gas for ten days due to maintenance. Trading prices rose during the day on Wednesday to exceed 220 euros per megawatt hour, which is the highest price in months. On Friday, the price fell again to less than 200 euros. But this weekend, the gas flow fell more than 14.4 million to 13 million kilowatt-hours. In addition, the Russian state-owned Gazprom announced that it would no longer supply gas to Latvia, because the Latvians refuse to switch to payments in rubles. Gazprom previously suspended deliveries to Bulgaria, Denmark, Finland, Poland and the Netherlands. Hungarian Prime Minister Viktor Orban expects to conclude an agreement with Russia this summer on the supply of 700 million cubic meters of additional gas.

Gas storages in the Netherlands are being filled according to plan

Dutch gas storage facilities have been filled as expected, the national government said in the weekly report on the security of gas supplies. The fill rate is now 64 percent, which is 61 percent a week ago. The government aims to have at least 80 percent full at the end of October, which is the end of the filling season. In the Netherlands, about 550 GWh of gas is now consumed per day, about a quarter less than the average for this time of year. Just like last week, the government is talking about an “early warning,” the lowest of three levels for the crisis. There is currently no acute gas shortage in the Netherlands, but reduced supplies could lead to higher prices and less filled gas storage facilities.