Gazprom's move to cut gas supply sparks fears in Germany

BERLIN • Russian energy company Gazprom's move to cut gas supplies to Germany is a warning signal that could cause problems for Europe's biggest economy in winter, the head of the country's energy regulator told a newspaper yesterday.

On Wednesday, Gazprom announced a further cut in the amount of gas it can pump through the Nord Stream 1, meaning the pipeline will run at just 40 per cent capacity.

Gazprom said the cuts were necessary because a turbine for a compressor station in north-western Russia was sent for repairs and had not been returned in time.

Siemens Energy, the German manufacturer of the turbine, said the machine had been sent to Canada for maintenance at a specialised facility in Montreal and that its return had been delayed because of Ottawa's sanctions on Russia.

Siemens Energy said it was trying to resolve the situation.

"It would significantly worsen our situation," German regulator chief Klaus Mueller told the Rheinische Post daily.

"We could perhaps get through the summer as the heating season is over. But it is imperative that we fill the storage facilities to get through the winter," he said.

Asked if he feared that Russia was serious about freezing gas supplies, Mr Mueller said: "It has so far been Russia's logic to want to continue selling gas to Germany. But we can't rule anything out."

"The Russian side's justification is simply a pretext," German Economy Minister Robert Habeck told reporters in Berlin on Wednesday. "It is obviously the strategy to unsettle and drive up prices."

As Germany tries to reduce its dependency on Russian energy, it is speeding up plans for liquefied natural gas (LNG) terminals, and Mr Mueller said he would welcome a floating terminal in Lubmin, on the Baltic Sea.

"A floating terminal in Lubmin is being looked at, there are talks at the moment," said Mr Mueller, adding that the Baltic Sea, as well as North Sea, was being considered to ensure sufficient capacity supply in southern Germany with gas from the coast.

At present, there does not seem to be a risk of immediate shortages. But some analysts say that Gazprom deliberately kept the levels in its facilities in Germany low and otherwise tried to influence markets in the lead-up to Russia's invasion of Ukraine.

REUTERS, NYTIMES