Russia's Gazprom Hints Delay In Resuming Gas Supply To Germany

Gazprom, the Russian state-owned energy corporation, expressed uncertainty on Wednesday as to whether normal gas supplies to Germany might resume via the Nord Stream 1 pipeline, citing a technical difficulty and safety concerns, Phil Rosen reported for Business Insider.

Photo Insert: A Gazprom facility

Due to issues with a Siemens turbine, the energy giant reduced gas exports to Germany from a crucial pipeline by 60 percent last month. In addition, as of Monday, Nord Stream 1 has been totally shut down for 10 days of yearly maintenance.

European officials have warned that gas flows may not resume as the Kremlin seeks to retaliate against Western sanctions imposed following Russia's invasion of Ukraine.

The Canadian government announced over the weekend that it would approve an exception to the Ukraine sanctions and permit the delivery of the gas turbine component to Germany. However, Gazprom issued a statement on Wednesday highlighting an additional obstacle.

"Gazprom does not possess any document 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 claimed.

"Under 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."

Analysts at Goldman Sachs warned in a note published last week that even if Nord Stream 1 reopens, Russian gas exports may stay low for some time. Previously, the bank anticipated that gas deliveries would be fully restored within 10 days, but it no longer believes this to be the most likely outcome.

Meanwhile, natural gas prices in Europe have increased by 70 percent since Gazprom reduced Nord Stream flows a month ago. The energy shortage could result in rationing and cause recessions throughout Europe.

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