European Gas Soars As Russia Throttles NS1 Flows To just 20% Of Capacity

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European Gas Soars As Russia Throttles NS1 Flows To just 20% Of Capacity

Less than 24 hours after EU countries approved the European executive's emergency natural gas consumption proposed cut of 15%, Russia further throttled gas supplies Wednesday, bringing deliveries through Nord Stream 1 to merely 20% of its total capacity, or roughly half of recent flows.

Reuters recorded that physical flows via Nord Stream 1 pipeline have fallen to 14.42mln KWH/H between 0900-1000BST (vs. 14.41mln KWH/H between 0800-0900BST; 27.77mln kWh/H between 05:00-06:00BST), noting further citing Germany’s gas network operator Gascade that since 07:00BST on Wednesday, 1.28MCM/hr - 20% of Nord Stream 1 maximum capacity has been transported in accordance with nominations. This sent prices soaring further to reach earlier all-time highs set immediately in the wake of the Ukraine invasion.

The Kremlin was cited as saying Wednesday that it is supply "as much gas to Europe as possible" but again stressed it's unable to guarantee supplies due to Western sanctions on vital equipment needed for proper maintenance and functioning.

Uniper and Italy's Eni have acknowledged receiving less gas from Gazprom through the start of this week into today, also with German Economy Minister Robert Habeck saying amid the scramble to stave off full-blown emergency rationing measures, "It is true that Germany, with its dependence on Russian gas, has made a strategic mistake but our government is working... to correct this."

Berlin accounts for 40% of all EU gas imports from Russia last year, and has been plunged into supply crisis since mid-June, when Gazprom initially halved its flows to the leading EU country (first cutting to 40% of capacity), with the federal government lately having to rescue its major gas importer Uniper with a $15 billion euro...

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