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Gazprom plans to ramp up deliveries from this week

2021-11-08T07:43:39.581Z


The gas storage facilities in Germany and Austria are poorly filled shortly before the start of winter. According to Putin, Gazprom now wants to ramp up deliveries, but the conflict over delivery policy could continue.


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Gazprom logo: "Speculation about malicious acts"

Photo: Sergei Ilnitsky / dpa

After months of the energy crisis, gas customers in Europe can hope for additional energy supplies from Russia from this week on.

Under the pressure of rising prices and poorly filled storage facilities, Russian President Vladimir Putin instructed the state gas giant Gazprom to replenish the reserves in Germany and Austria.

Shortly before the start, a spokesman for Putin confirmed that the plan was in place and that Gazprom would deliver more than the agreed mandatory quantities after November 8th.

First the domestic supplies should be replenished.

But now Gazprom should also open the valves for Europe.

Russia's state media cheered that Putin was the "savior in the gas crisis" and was protecting the EU from the cold shock.

The Federal Association of Energy and Water Industries welcomed Moscow's announcement.

At the end of October, according to the association, the plants supplied by Gazprom in Germany were only 21 percent full, below average compared to other gas storage facilities.

Meanwhile, Russia continues to oppose European allegations that the country is driving up prices by holding back gas.

As Russia's most important woman in gas exports, Jelena Burmistrowa has just now firmly rejected responsibility for the energy crisis on the international stage.

The head of Gazprom-Export said at a conference in Amsterdam a few days ago that anyone who makes "such speculations about Gazprom's malicious acts" is far from reality.

Russia wants to do without Ukraine as a transit country

In Germany and in other EU countries, the country is faced with political accusations that deliveries are in short supply in order to bring about the rapid commissioning of the finished Nord Stream 2 pipeline in the Baltic Sea.

The Kremlin advocated that the politically controversial project could ease the situation, but that all the agreed quantities would also be delivered independently of this.

Customers in the West also confirmed that Russia delivers reliably.

Russia kept pointing out that there was a gas crisis around the world.

The reasons lie in the recovery of the economy after the restrictions caused by the pandemic.

There is a hunger for energy, especially in Asia.

Last but not least, the US would have preferred to deliver additional liquefied gas there and not to Europe, said Burmistrowa.

Putin had accused the Europeans of neglecting to properly fill their gas storage tanks after a cold winter.

To make matters worse, because of the calm wind in the North Sea, the wind turbines there produced less electricity.

More gas had to be converted into electricity.

This also reduced storage reserves.

It is not at all disputed that the raw materials giant is fulfilling its contracts.

Rather, the point of contention is whether Russia is really doing everything it can to deliver additional quantities.

Putin himself made it clear that there were limits for him.

For example, Gazprom wants to do without Ukraine, which has long been the most important transit country for Russian gas deliveries to Europe.

Gazprom: Gas prices that are too high could fuel the switch to renewables

Gazprom Vice President Burmistrowa said at the conference in Amsterdam that Russia was not interested in extremely high gas prices.

The "record prices" could accelerate the transition to renewable energies in the EU.

In the country, however, Europe wants to earn money for its national budget with fossil fuels for a long time to come.

Putin has repeatedly spoken out in favor of a return to long-term contracts, because this gives Russia planning security for the development of new deposits.

The gas price should therefore be linked to that for oil.

Russia is also increasingly producing liquefied gas and can therefore react more quickly to acute situations.

Burmistrowa: "In contrast to the flexible suppliers of liquefied gas, we are firmly bound to Europe through our pipeline system."

Analysts believe that the storage facilities in Europe are currently still filled with around 82 billion cubic meters or 76 percent of active gas.

That is about 15 percentage points less than the average level for the past five years.

But Gazprom's storage facilities in Germany and Austria, as CEO Alexej Miller admitted in a conversation with Putin, had hardly any gas left.

Therefore it is now being delivered.

apr / dpa

Source: spiegel

All business articles on 2021-11-08

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