Gazprom says it can’t guarantee functioning of Nord Stream gas pipeline

Russian energy giant blamed the delayed return of a turbine from Canada for recent reduction in gas deliveries. Russian state-owned energy giant Gazprom warned on Wednesday it could not guarantee the functioning of “critical” equipment for the Nord Stream 1 gas pipeline despite Canada’s decision to return an essential turbine after it was repaired in the country.

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Nord Stream, Germany’s main source of gas from Russia, was shut down on Monday for ten days of scheduled maintenance work, leaving EU leaders fretting that Gazprom wouldn’t turn the pipeline back on after the outage.

A key turbine for the pipeline is being repaired at a Canadian site owned by Germany’s Siemens. Gazprom had blamed the delayed return of the turbine for a recent 40 percent reduction in gas deliveries through the pipeline.

Last Saturday, Canada said it would allow the return of the equipment to Russia through Germany, despite appeals from Ukraine to hold off on the delivery.

In a statement, the energy company said that “Gazprom does not possess any documents that would enable Siemens to get the gas turbine engine […] out of Canada, where that engine is currently undergoing repairs.”

“In the circumstances,” the statement adds, “it appears impossible to reach an objective conclusion on further developments regarding the safe operation of the Portovaya [station], a facility of critical importance to the Nord Stream gas pipeline.”

EU officials feared Moscow would keep the pipeline closed.

Russian gas starts flowing through Nord Stream pipeline again.

The Nord Stream gas pipeline between Russia and the EU has reopened, with deliveries slowly getting back to supply levels seen before the link closed for maintenance on July 11.

The news that supplies via the Russia to Germany pipeline have resumed will provide some relief to European governments, who feared Moscow would not switch the flow back on again. But the respite may only be temporary.

While flows of gas through the Russia to Germany link reached 40 percent of capacity on Thursday, roughly where they were before the link powered down, there could be another supply drop next week.

Russian President Vladimir Putin warned that beginning Monday, the restored flows could halve — from 60 million cubic meters a day (mcm/d) to about 30 mcm/d — as the delayed return of six gas turbines being refurbished in Canada limits the pipeline’s capacity.

The turbines are needed to power compressor stations, which push gas through the line. Nord Stream flows plummeted to 40 percent on June 16 as the swapping out of a first turbine was delayed, causing Russian supplier Gazprom to invoke act-of-God clauses in delivery contracts with European clients.

A political dust-up involving politicians in Moscow, Berlin, Ottawa and Kyiv over whether returning the turbines violated sanctions imposed on Russia over its war in Ukraine cast doubt over whether the key components would make it back in time.

A first turbine is expected to arrive in Russia on Sunday at the earliest, but Gazprom has said it is waiting for written guarantees that the remaining five will also be sent, Russian daily Kommersant reported.

“Unfortunately, the political uncertainty and the 60 percent cut from mid-June remain,” said Klaus Müller, president of Germany’s federal infrastructure regulator, on Thursday.

Politicians have warned the maintenance excuse is a ruse, given Russia has the option to send gas to Europe via pipelines through Ukraine.

Russian state-backed exporter Gazprom has already halted or reduced deliveries to 12 EU countries, and the fear is that Putin will shut off the gas for good in retaliation for sanctions over his invasion of Ukraine.

“Russia is blackmailing us, Russia is using energy as a weapon,” European Commission President Ursula von der Leyen warned on Wednesday in Brussels. “If we look in hindsight, we see that months before the war broke out, Russia kept gas supply intentionally as low as possible … therefore reducing the supply, tightening the market and driving up the prices.”

Spot gas prices at the EU benchmark trading hub TTF fell slightly, reaching €147 per megawatt-hour at 1.30 p.m. Brussels time on Thursday. On Wednesday the price closed at €155/MWh.