Russian state-run energy company Gazprom signaled uncertainty Wednesday about whether gas supplies to Germany could resume as normal via the Nord Stream 1 pipeline, citing a technical problem and safety issues.
Last month, the energy giant slashed gas deliveries to Germany from the key pipeline by 60% due to problems with a Siemens turbine. And since Monday, Nord Stream 1 has been shuttered completely for 10 days of annual maintenance. Before it closed down, European official have warned gas flows may not restart as the Kremlin looks to retaliate against Western sanctions imposed after Russia invaded Ukraine.
Over the weekend, the Canadian government said it would OK an exception to the Ukraine sanctions and allow the gas turbine part to be delivered to Germany, though Gazprom raised an additional complication in a statement Wednesday.
“Gazprom does not possess any documents that would enable Siemens to get the gas turbine engine for the Portovaya CS out of Canada, where that engine is currently undergoing repairs,” the company said. “In these circumstances, it appears impossible to reach an objective conclusion on further developments regarding the safe operation of the Portovaya CS, a facility of critical importance to the Nord Stream gas pipeline.”
Goldman Sachs analysts wrote in a note last week that gas exports from Russia via Nord Stream 1 may remain low for a while even if it reopens. The bank had previously expected gas deliveries to be fully restored after 10 days, but it no longer sees that as the most likely scenario.
Meanwhile, natural gas prices have surged 70% in Europe since Gazprom slashed Nord Stream flows last month. The energy crunch could lead to rationing and trigger recessions across Europe.
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