The biggest jump in the European market was from Tuesday to Wednesday, when the price jumped by 23 euros. By noon on Thursday, it then moved up another 20 euros. This is a higher price than on the first day of the beginning of the war in Ukraine, ie February 24.
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Russia’s gas giant Gazprom said on Tuesday and Wednesday that it was significantly reducing its maximum supply via the Nord Stream 1 pipeline, which runs along the bottom of the Baltic Sea to Germany and is the main supply route for Europe.
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According to Reuters, the pipeline operated on only 40 percent of its highest possible capacity on Thursday, which further raised the price.
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According to Gazprom, the reason for the reduced capacity is the incomplete repair of the equipment by the German company Siemens Energy. However, according to German Economy and Climate Protection Minister Robert Habeck, this is a politically motivated decision.
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According to RIA Novosti, Russia’s ambassador to the European Union, Vladimir Chizhov, even said on Thursday that persistent problems with repairs to compressor stations could lead to Russia shutting down the Nord Stream 1 pipeline altogether.
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Such a scenario would be a disaster for Germany, which is dependent on gas supplies through the pipeline, the ambassador to the St. Petersburg Economic Forum said.
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The Texas problem
The market is responding to concerns about reduced supplies, which also affect not only Russia, but also the United States, where last week there was an explosion and subsequent fire at the LNG export terminal in Texas, USA, which accounts for up to 20 percent of US LNG exports.
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This is also a problem for Europe, as the Texas terminal has become a major supplier in recent months. In addition, its operator, the American company Freeport LNG, announced that the production outage due to the fire will last at least until September, while the terminal will not be put into full operation until the end of this year.
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