Key Russia-Germany gas pipeline Nord Stream AG resumes flow

The pipeline has been closed since July 11 for annual maintenance work

Published: Thu 21 Jul 2022, 12:25 PM

Natural gas resumed flowing through a major pipeline from Russia to Europe after a 10-day shutdown for maintenance, the Nord Stream AG operator said. However, the gas flow was expected to fall short of full capacity on Thursday, and the outlook was uncertain.

The Nord Stream 1 pipeline (under the Baltic Sea) to Germany had been closed since July 11 for annual maintenance work. Amid growing tensions over Russia’s war with Ukraine, German officials had feared that the pipeline— the country’s main source of Russian gas, which recently has accounted for around a third of Germany’s gas supply— might not reopen at all.

The operator explained that network data showed gas beginning to arrive after the maintenance, which had been scheduled to end at 6am.

Deliveries were expected to fall well below the pipeline's full capacity. Nord Stream said a similar amount of gas was expected to that seen before maintenance, reported German news agency, dpa.

The head of Germany's network regulator, Klaus Mueller, said on Twitter that Russia’s Gazprom, on Thursday, had notified deliveries of only about 30% of the pipeline's capacity. In mid-June, the state-owned Gazprom had cut the flow to 40% of its capacity. It cited alleged technical problems involving equipment that partner Siemens Energy sent to Canada for overhaul, which couldn’t be returned because of sanctions imposed over Russia’s invasion of Ukraine.

Earlier this month, the Canadian government gave permission for the turbine— that powers a compressor station at the Russian end of the pipeline— to be delivered to Germany.

The German government has rejected this explanation for the gas reduction, charging repeatedly that it was only a pretext for a political decision to sow uncertainty and further push up energy prices. It has said the turbine was a replacement that was only supposed to be installed in September, and that it was doing everything to deprive Russia of the pretext to reduce supplies.

Russian President Vladimir Putin said on Tuesday that Gazprom still hadn’t received the relevant documents for the turbine’s return— a claim repeated the next day by Gazprom. Putin said that Gazprom was to shut another turbine for repairs in late July, and if the one that was sent to Canada wasn’t returned by then, the flow of gas would decline even further.

The head of the European Union’s executive Commission, Ursula von der Leyen, said on Wednesday that the turbine was “in transit”, and there was “no pretext not to deliver [gas]". The Commission proposed that member countries cut their gas use by 15 per cent over the coming months as the bloc braces for a possible full Russian cut off of gas supplies.

Germany and the rest of Europe are scrambling to fill gas storage in time for winter and reduce their dependence on Russian energy imports. Germany has Europe’s biggest economy: gas is important to power its industries, provide heating and, to some extent, generate electricity. Just last month, the government activated the second phase of Germany’s three-stage emergency plan for natural gas supplies, warning that Europe’s biggest economy faced a “crisis” and winter storage targets were at risk. As of Wednesday, Germany's gas storage was 65.1 per cent full.

To make up for shortfalls, the German government has given the green light for utility companies to fire up 10 dormant coal-fired power plants and six that are oil-fuelled. Another 11 coal-fired power plants scheduled to be shut down in November will be allowed to keep operating.