Berlin said it aimed to sign LNG contracts in the United Arab Emirates to supply terminals it is building, now that the vital Nord Stream 1 gas pipeline from Russia has been shut down, while Spain, France and others outlined contingency plans to try to avoid power outages. read more “If everything goes well, savings in Germany are high and we have a bit of luck with the weather, we have a chance to get through the winter comfortably,” Economy Minister Robert Habeck said after a tour of a future LNG terminal. in northern Germany. read more Sign up now for FREE unlimited access to Reuters.comSign up A sharp drop in supplies from Russia, which previously supplied around 40% of the European Union’s gas needs, has left governments scrambling to find alternative energy sources and sparked fears of possible blackouts and recession. Russia has blamed Western sanctions imposed on Moscow for its invasion of Ukraine for blocking pipeline deliveries. European politicians say Moscow is using energy as a weapon. Germany’s RWE ( RWEG.DE ) said it was in “good and constructive talks” with Qatar over LNG deliveries, ahead of Chancellor Olaf Soltz’s planned visit to the Gulf. Troubled importer Uniper ( UN01.DE ) said it had not reached a deal yet. Germany will also be able to count on natural gas flowing from France from around October 10, the head of French energy regulator CRE said, after President Emmanuel Macron announced the two would help each other on energy supply. Although deliveries via Nord Stream 1 have stopped, flows of Russian natural gas to Europe via Ukraine, albeit greatly reduced, have continued. In France, CRE chief Emmanuelle Wargon said if energy group EDF’s fight to repair corrosion-hit nuclear reactors suffered delays, “extraordinary” measures this winter could include local blackouts. read more “But there will be no gas cuts for households. Never,” he told franceinfo television.
“HARD WINTER”
In the Pyrenees, Spanish Industry Minister Reyes Maroto said requiring energy-intensive companies to shut down during consumption peaks was an option this winter, if required. The companies will be financially compensated, she told Spanish news agency Europa Press, adding that there was no need to impose such closures now. And Finns were warned by national grid operator Fingrid that they should be prepared for blackouts. read more Mirroring the unrest across the continent, Finnish electricity retailer Karhu Voima Oy said it has filed for bankruptcy amid soaring electricity prices. Meanwhile in Germany, Habeck said Berlin would not let major gas importers such as VNG become insolvent, while an economy ministry spokesman said “focused” bailout talks were underway with the troubled importer Uniper (UN01.DE). read more Pipes at the disposal facility of the Nord Stream 1 natural gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke read more Germany’s economy is already shrinking and will likely worsen over the winter months as natural gas consumption falls or tapers, the country’s central bank said on Monday. In Portugal, the government has been blunt about its concerns. “From one day to the next, we could have a problem, such as not being supplied with the volume of gas that was planned,” Environment and Energy Minister Duarte Cordeiro said, adding that Portugal was working to diversify its supplies to boost energy security. “Portugal is preparing, like all of Europe, for a difficult winter,” he said, urging the European Commission to press ahead with plans for a common platform to buy gas from the EU and set import prices. read more
NORD STREAM REQUESTS 1
Russia, which supplied about 40 percent of the European Union’s natural gas before its invasion of Ukraine in February, said it shut down Nord Stream 1 because Western sanctions hampered operations. European politicians say this is a pretext and accuse Moscow of using energy as a weapon. German buyers briefly reserved capacity on Monday to take Russian gas through the Nord Stream 1 pipeline, once one of Europe’s most important natural gas supply routes, for the first time since the line was shut down three weeks ago. But they soon rejected the requests. It was not immediately clear why buyers had submitted requests for capacity, while Russia gave no indication after shutting down the line that it would restart soon. read more Meanwhile, Ukraine accused Russian forces of shelling near the Pivdennoukrainsk nuclear power plant in Ukraine’s southern Mykolaiv region. read more Since its forces were driven out of Kharkiv, Russia has repeatedly fired on power plants, water infrastructure and other civilian targets in what Ukraine says is retaliation for defeats on the ground. Moscow denies it deliberately targeted civilians. read more
‘BACK IN TIME’
European gas storage is now 85.6% full, with stocks in Germany close to 90%, data from Gas Infrastructure Europe showed. “Shares are set to continue to build further, supported by the completion of planned maintenance work and an increase in flows to Norway from this week,” Energi Danmark analysts said in a morning note. Europe’s thermal coal imports in 2022 could be the highest in at least four years, analysts said. “Europe is turning back the clock,” Rodrigo Echeverri, head of research at Noble Resources, told a conference. Oil prices fell more than 2 percent on Monday, weighed down by expectations of weaker global demand and a stronger U.S. dollar ahead of a potentially big interest rate hike, although supply concerns capped the decline. read more Sign up now for FREE unlimited access to Reuters.comSign up Report from Reuters offices. Ingrid Melander writes. Editing by Edmund Blair, Mark Heinrich, Hugh Lawson and David Evans Our Standards: The Thomson Reuters Trust Principles.
