In recent days, there is a growing fear among experts that Russia will limit gas flows to Europe in the fall. Another weekly shutdown of the Nord Stream 1 gas pipeline, which is the main gas transportation artery to Europe, began in the middle. According to experts, Moscow will look for me in the next few weeks and gave hints that will lead to limited supplies. This was reported by the Bloomberg agency.
As we have been waiting for, Russia will use its gas like an open weapon, said the French Minister of Energy Agnes Pannier-Runacherov in the center, adding that the country has enough resources to deal with this situation and sleep through the winter.
In the worst case scenario, gas flow to the region could be completely stopped. However, Europe still does not have alternative supplies to Russian gas. Mainly for problems with the pepper.
The threat of social unrest?
The problem is that during the next few months there will be a sharp increase in demand for these commodities, and this could drive gas prices to astronomical levels. However, experts warn that this will, among other things, incite social unrest in Europe.
The supplies of the Nord Stream 1 gas pipeline have stopped in the middle. About two weeks ago, the Russian gas company Gazprom stated that the station’s only spare compressor needed demolition. After the completion of the work, if there are no technical problems, the transport will be restored to the current dream level of 33 million cubic meters per day, added Gazprom, which is controlled by the Kremlin.
The Russian company shared that the German company Siemens Energy will cooperate with us on the sale of compressors at the Portovaja station, which is part of the Nord Stream 1 gas pipeline and is located near the Finnish border.
The main problem is Germany
The epicenter of the problem should be Germany in the near future. First, the Nord Stream gas pipeline connects to the European gas pipeline there, where households and factories rely heavily on this fuel. The reason is, among other things, the building’s dependence on Russian energy for several years. According to Klaus Müller, the president of the Spolkov Agency for the Central Region, however, the country is now better prepared for the elites to fall under new restrictions from Russia.
The gas tanks are 85 percent full, Mller said. Gas reserves in Germany are filling up quickly, but even if the tariff is 95%, according to him, the country would cover the demand for heating, industry and electricity only for me, not for the month. His company, the country’s energy regulator BNetzA, would distribute gas throughout Germany in the event of an emergency.
However, Mller immediately added that the largest European economy must reduce gas consumption by at least 20% and ensure that it has supplies so that it can survive the upcoming heating season. Otherwise, according to him, it will be tk.
The banking company Commerzbank warned Germany of another economic recession. This could lead to a situation where Russia would completely stop gas supplies to Europe. However, major risks should also apply to Austria and Italy, the Fitch Ratings agency stated in its summary.
The forecast is confirmed by the fact that a large industrial sector in Germany is limiting production. The reason is the high energy prices now. If there were more such companies, the German economy would face long-term economic problems.
The threat of demand destruction
If prices remain at this level, we will witness a large destruction of demand, James Huckstepp, who is the head of the analytical department at S&P Global Commodity Insights, told Bloomberg.
Some analysts, however, expect Russia to maintain some gas flow to Europe. This is one of his main sources of income for the state treasury.
Goldman Sachs Group analysts said last week, for example, that the permanent stoppage of the Nord Stream is not their primary goal, and they expect a renewed flow of up to 20 percent of the maximum capacity, and this, according to some experts, could be enough to save the European winter.