German utility giant Uniper has had to tap its winter gas reserves as Russia cuts energy deliveries, the FT reports. The Nord Stream 1 pipeline is under maintenance, though Russia’s Gazprom has hinted it could delay bringing it back online. Germany aims to restore its gas storage facilities to 90% by November, but they currently sit at 64.5%. Loading Something is loading.
German energy giant Uniper has been forced to tap into its emergency supplies before the winter season after Russia’s Gazprom shut off natural gas deliveries to the country.
According to a Financial Times report, the Düsseldorf-based company, which is Europe’s biggest buyer of Russian gas, said that beginning earlier this week it’s been taking gas from storage units amid dwindling supplies.
The company has had to lean on its emergency winter supplies to meet contractual obligations to its customers, per the report, as it hasn’t received any supplies via the Nord Stream 1 pipeline which is undergoing maintenance through July 21.
Germany has already been forced to accept only about 40% of expected gas deliveries from Russia, which has worsened the country’s energy crunch.
“This development makes it harder to reach the storage levels necessary for the winter and reduces the reserves available in the event of a gas deficit situation,” Germany’s Federal Network agency said, per the FT.
Germany aims to refill the gas storage facilities back to 90% by November, though it supply now stands at about 64.5%. Those shortages could spill over and hurt other European nations including France, Austria, Denmark, Switzerland, and the Czech Republic.
On Wednesday, Russia’s Gazprom hinted at a delay in resuming gas deliveries to Germany based on a safety warning and maintenance issues.
Still, Goldman Sachs analysts forecasted last week that, should the repairs bring Nord Stream 1 back online again, gas exports would remain low via the pipeline.
All the while, German officials have been working toward a bailout for Uniper, as it has come under severe financial strain in recent months since war in Ukraine began. The company last week requested a rescue package from Berlin, which will likely lead to the government taking a stake in the utility giant.
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