The Kremlin denies using Russia’s natural gas resources to open the screw EuropeAfter the natural gas in the pipeline to Germany turned eastward for the second day in a row, as the midwinter approached, prices remained near historical highs.
Data from the network operator Gascade shows that traffic to Germany through the Yamal-Europe pipeline fell over the weekend, then stopped and reversed on Tuesday.
Russian state-owned gas company Gazprom says supply is flowing Russia But because of the cold weather and high demand there.
As supplies are tightening, Italian Prime Minister Mario Draghi called for urgent action to deal with soaring fuel costs. He said that companies that profited from the crisis should contribute to curbing the higher bills of households and businesses.
“There are large energy producers and distributors that make good profits. They need to participate to support the economy, and they also need to help their families,” Draghi said in Rome.
Wholesale Dutch natural gas prices in recent months, the European price benchmark, rose by more than 20% on Tuesday, closing at a record high of 181 euros per megawatt hour (MWh). The equivalent British natural gas contract also rose by about 20% on Tuesday, from around 51 pence a year ago to a new high of 4.51 pounds per heat.
Prices fell on Wednesday, but they were still high. The price of natural gas delivered in Europe next month fell by 3% to 175 euros per MWh, and the UK’s near-month contract fell to 4.17 pounds per heat.
Some analysts and European politicians have already Implied that Moscow deliberately suppressed natural gas supply In the case of tensions in Ukraine and the delay in European certification of another pipeline, Nord Stream 2, in order to consolidate its political position.
The Kremlin denied using this strategy. “Absolutely no contact [to Nord Stream 2], This is a purely commercial situation,” a spokesperson said.
German power suppliers RWE and Uniper are both Gazprom’s largest customers, and they stated that the state-owned company is fulfilling its delivery obligations.
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Gazprom has previously stated that it is fulfilling all long-term contracts with European customers
The pipeline reversal has added other pressures, keeping natural gas prices high for most of 2021. The ripple effects include A large number of British energy suppliers went bankrupt.
The Bulgarian government approved a $867 million plan on Wednesday to help companies survive the winter, which shows that people are increasingly worried about the impact of soaring natural gas and electricity costs. These measures will include compensation to power distribution companies and heating utilities in an attempt to prevent substantial increases in household energy costs.
Potential factors driving a new round of surge in natural gas prices include colder weather and strong demand for power stations. Some French nuclear power plants have been shut down due to safety issues.
In addition, wind speeds in Europe are slower than usual, which means that the electricity generated by the turbines is lower than expected.
According to a report in the Financial Times this week, ships carrying LNG to Asia have been turning to serve European consumers who are willing to pay a large premium during the price spike.
