Tag: Pipelines

  • Russian navy ship photographed near Nord Stream pipelines before blasts

    Russian navy ship photographed near Nord Stream pipelines before blasts

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    A Russian navy vessel specialising in submarine operations was photographed near the sabotaged Nord Stream gas pipelines just prior to the mysterious September blasts, according to the Danish daily newspaper Information.

    The prosecutor leading Sweden’s investigation into the sabotage confirmed the existence of the hitherto publicly unknown photographs.

    “I’m aware of the information from before … This is not new information to us,” Mats Ljungqvist said on Friday.

    The newspaper said the submarine rescue ship SS-750 was photographed in the Baltic Sea four days before the still-unexplained explosions on the pipelines linking Russia to Germany. The ship carries a mini-submarine.

    “The Danish military confirmed that 26 photos of the Russian vessel were taken from a Danish patrol boat in the zone located east of Bornholm on 22 September 2022,” Information said, adding the photos were classified.

    The Danish military has not responded to AFP’s request for comment.

    Ljungqvist said he could not comment on the photographs’ significance to the Swedish investigation, noting it was “confidential”.

    Seven months after the spectacular blasts on the Nord Stream 1 and 2 pipelines, it has yet to be established who was responsible, despite criminal investigations in the countries bordering the damaged part of the pipelines, Germany, Sweden and Denmark.

    The New York Times reported in March that US officials had seen new intelligence indicating that a “pro-Ukrainian group” was responsible, without the involvement of the Ukrainian president, Volodymyr Zelenskiy.

    German prosecutors subsequently said that, in January, investigators had searched a ship suspected of having transported explosives used in the blasts.

    In March, Ljungqvist said it was “still unclear” who was behind the sabotage, calling it “a complex case”. “Our primary assumption is that a state is behind it,” he said.

    A former Danish intelligence officer turned analyst, Jacob Kaarsbo, told Information that the presence of SS-750 in the zone “sheds light on what was going on in the region in the preceding days”.

    The confirmation was of particular interest “because we know it is capable of carrying out such an operation”, he said.

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    ( With inputs from : www.theguardian.com )

  • Mumbai’s main water pipelines burst, half the city to suffer water cuts

    Mumbai’s main water pipelines burst, half the city to suffer water cuts

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    Mumbai: A major water main pipeline was damaged and burst during the construction of a water culvert near the Mulund Octroi Checkpost in Mumbai on Monday afternoon, the BMC Disaster Control said.

    The 2,345 mm Mumbai-2 mainline, which supplies water from the Pise-Panjrapur Treatment Plant Complex, was damaged during the ongoing work carried out by the Maharashtra State Road Transport Corporation (MSRDC) at Hariom Nagar.

    Eyewitnesses said that a massive water jet was seen shooting at least 20 metres upwards and lakhs of litres of the precious drinking water flowing from there into the gutters, flooding some of the low-lying areas around.

    Moving swiftly, the BMC engineers have shut off the water on the affected main pipeline and initiated the repair works.

    Consequently, the BMC will impose a 15 percent water cut in almost half of the city, comprising most parts of south Mumbai and the eastern suburbs for 48 hours starting from 10 p.m. on March 27 till 10 p.m. on March 29.

    The areas that will be hit are the BMC’s Wards T (Mulund east-west), S (Bhandup, Nahur, Kanjurmarg and Vikhroli east), N (Vikhroli west, Ghatkopar east-west, L (Kurla east), M East/West – Entire region, in the eastern suburbs.

    In south Mumbai, entire A, B, E, F-North and F-South, shall experience the 15 per cent water cut including the posh residential, business, trading, commercial hubs and important administration offices of the state and Central government located in different areas.

    The BMC Disaster Control has appealed to all people to use water sparingly for the next couple of days and cooperate with the civic authorities.

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    ( With inputs from www.siasat.com )

  • Cut off by Europe, Putin pins hopes on powering China instead

    Cut off by Europe, Putin pins hopes on powering China instead

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    Chinese President Xi Jinping’s marathon three-day visit to Moscow was hailed by the Kremlin as the dawn of a new age of “deeper” ties between the two countries, as Russia races to plug gaping holes left in its finances by Western energy sanctions.

    But while Vladimir Putin insisted a new deal struck during the negotiations on Wednesday will ensure Russia can weather the consequences of its invasion of Ukraine, analysts and European lawmakers say he’s overestimating just how much Beijing can help him balance the books.

    Prior to the full-blown invasion, Russia’s oil and gas sector accounted for almost half of its federal budget, but embargoes and restrictions imposed by Western countries have since created a multi-billion dollar deficit.

    With the country’s ever-influential oligarchs estimated to be out of pocket to the tune of 20 percent of their wealth — and industry tycoon Oleg Deripaska warning the state could run out of money as soon as next year — Putin is seeking to reassure them he’s opened up a massive new market.

    “Russian business is able to meet China’s growing demand for energy,” Putin declared Tuesday, ahead of an opulent state banquet.

    But analysts and Ukrainian officials have been quick to point out that actually stepping up exports of oil and gas to China will be a technical challenge for Moscow, given most of its energy infrastructure runs to the West, not the East.

    Putin on Wednesday announced a major new pipeline, Power-of-Siberia 2, that will carry 50 billion cubic meters of gas to China via Mongolia to fix that problem.

    But “in reality, it’s pretty unclear what has actually been agreed,” said Jade McGlynn, a Russia expert at King’s College London. “When it comes to terms and pricing, Beijing drives a hard bargain at the best of times — right now they know Russia’s not got a strong hand.”

    Details of the financing and construction of the project have not yet been revealed.

    And with predictions of a financial downturn swirling, Beijing may not need more energy to power sluggish industries, McGlynn added.

    Yuri Shafranik, a former energy minister under Boris Yeltsin who now heads Russia’s Union of Oil and Gas Producers, suggested China’s appetite for natural gas “will certainly increase” in the coming years, and pointed out that Beijing would not have signed a pipeline agreement if it didn’t need the resources.

    But, if the Kremlin was hoping to replace Europe as a reliable customer, it may end up disappointed, said Nathalie Loiseau, a French MEP who serves as chair of the Parliament’s subcommittee on security and defense.

    “They chose to use energy to blackmail Europe even before the war,” she said. “Now, Russia has to find new markets and must accept terms and conditions imposed by others. China is taking advantage of the situation.”

    In a bid to sweeten the terms, Putin invited all of Asia, Africa and Latin America to buy Russian oil and gas in China’s domestic currency, the renminbi, at the close of Xi’s speech on Tuesday. This came after Xi had already indicated at the China-Arab Summit in December in Riyadh that he would welcome the opportunity to trade oil and gas with Saudi Arabia on similar terms.

    The outreach is a nod to the 1974 pact between then-U.S. President Richard Nixon and the Saudi kingdom to accept dollars in exchange for oil, which would in turn be spent on Western goods, assets and services. Non-Western nations have, however, been threatening to move away from dollar pricing in energy markets for years to no effect.

    Still, Russia’s efforts to peel away from Western-dominated energy markets are unlikely to make much difference to its fortunes in the long run, according to Simone Tagliapietra, a research fellow at the Bruegel think tank.

    “What we are seeing is it’s proving extremely difficult for Russia to diversify away from Europe, and they’ve been forced to become a junior partner of China,” Tagliapietra said. “After this, Moscow won’t be an oil and gas superpower as it was before, not just because of sanctions but also because of the green transition.”



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    ( With inputs from : www.politico.eu )

  • Who blew up Nord Stream?

    Who blew up Nord Stream?

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    Nearly six months on from the subsea gas pipeline explosions, which sent geopolitical shockwaves around the world in September, there is still no conclusive answer to the question of who blew up Nord Stream.

    Some were quick to place the blame squarely at Russia’s door — citing its record of hybrid warfare and a possible motive of intimidation, in the midst of a bitter economic war with Europe over gas supply.

    But half a year has passed without any firm evidence for this — or any other explanation — being produced by the ongoing investigations of authorities in three European countries.

    Since the day of the attack, four states — Russia, the U.S., Ukraine and the U.K. — have been publicly blamed for the explosions, with varying degrees of evidence.

    Still, some things are known for sure.

    As was widely assumed within hours of the blast, the explosions were an act of deliberate sabotage. One of the three investigations, led by Sweden’s Prosecution Authority, confirmed in November that residues of explosives and several “foreign objects” were found at the “crime scene” on the seabed, around 100 meters below the surface of the Baltic Sea, close to the Danish Island of Bornholm.

    Now two new media reports — one from the New York Times, the other a joint investigation by German public broadcasters ARD and SWR, plus newspaper Die Zeit — raised the possibility that a pro-Ukrainian group — though not necessarily state-backed — may have been responsible. On Wednesday, the German Prosecutor’s Office confirmed it had searched a ship in January suspected of transporting explosives used in the sabotage, but was still investigating the seized objects, the identities of the perpetrators and their possible motives.

    In the information vacuum since September, various theories have surfaced as to the culprit and their motive:

    Theory 1: Putin, the energy bully

    In the days immediately after the attack, the working assumption of many analysts in the West was that this was a brazen act of intimidation on the part of Vladimir Putin’s Kremlin.

    Mykhailo Podolyak, an adviser to Volodymyr Zelenskyy, spelt out the hypothesis via his Twitter feed on September 27 — the day after the explosions were first detected. He branded the incident “nothing more [than] a terrorist attack planned by Russia and act of aggression towards the EU” linked to Moscow’s determination to provoke “pre-winter panic” over gas supplies to Europe.

    Polish Prime Minister Mateusz Morawiecki also hinted at Russian involvement. Russia denied responsibility.

    The Nord Stream pipes are part-owned by Russia’s Gazprom. The company had by the time of the explosions announced an “indefinite” shutdown of the Nord Stream 1 pipes, citing technical issues which the EU branded “fallacious pretences.” The new Nord Stream 2 pipes, meanwhile, had never been brought into the service. Within days of Gazprom announcing the shutdown in early September, Putin issued a veiled threat that Europe would “freeze” if it stuck to its plan of energy sanctions against Russia.

    But why blow up the pipeline, if gas blackmail via shutdowns had already proved effective? Why end the possibility of gas ever flowing again?

    Simone Tagliapietra, energy specialist and senior fellow at the Bruegel think tank, said it was possible that — if it was Russia — there may have been internal divisions about any such decision. “At that point, when Putin had basically decided to stop supplying [gas to] Germany, many in Russia may have been against that. This was a source of revenues.” It is possible, Tagliapietra said, that “hardliners” took the decision to end the debate by ending the pipelines.

    Blowing up Nord Stream, in this reading of the situation, was a final declaration of Russia’s willingness to cut off Europe’s gas supply indefinitely, while also demonstrating its hybrid warfare capabilities. In October, Putin said that the attack had shown that “any critical infrastructure in transport, energy or communication infrastructure is under threat — regardless of what part of the world it is located” — words viewed by many in the West as a veiled threat of more to come.

    Theory 2: The Brits did it

    From the beginning, Russian leaders have insinuated that either Ukraine or its Western allies were behind the attack. Kremlin spokesman Dmitry Peskov said two days after the explosions that accusations of Russian culpability were “quite predictable and predictably stupid.” He added that Moscow had no interest in blowing up Nord Stream. “We have lost a route for gas supplies to Europe.”

    Then a month on from the blasts, the Russian defense ministry made the very specific allegation that “representatives of the U.K. Navy participated in planning, supporting and executing” the attack. No evidence was given. The same supposed British specialists were also involved in helping Ukraine coordinate a drone attack on Sevastopol in Crimea, Moscow said.  

    The U.K.’s Ministry of Defence said the “invented” allegations were intended to distract attention from Russia’s recent defeats on the battlefield. In any case, Moscow soon changed its tune.

    Theory 3: U.S. black ops

    In February, with formal investigations in Germany, Sweden and Denmark still yet to report, an article by the U.S. investigative journalist Seymour Hersh triggered a new wave of speculation. Hersh’s allegation: U.S. forces blew up Nord Stream on direct orders from Joe Biden.

    The account — based on a single source said to have “direct knowledge of the operational planning” — alleged that an “obscure deep-diving group in Panama City” was secretly assigned to lay remotely-detonated mines on the pipelines. It suggested Biden’s rationale was to sever once and for all Russia’s gas link to Germany, ensuring that no amount of Kremlin blackmail could deter Berlin from steadfastly supporting Ukraine.

    Hersh’s article also drew on Biden’s public remarks when, in February 2022, shortly before Russia’s full-scale invasion, he told reporters that should Russia invade “there will be no longer Nord Stream 2. We will bring an end to it.”

    The White House described Hersh’s story as “utterly false and complete fiction.” The article certainly included some dubious claims, not least that NATO Secretary General Jens Stoltenberg has “cooperated with the American intelligence community since the Vietnam War.” Stoltenberg, born in 1959, was 16 years old when the war ended.

    Russian leaders, however, seized on the report, citing it as evidence at the U.N. Security Council later in February and calling for an U.N.-led inquiry into the attacks, prompting Germany, Denmark and Sweden to issue a joint statement saying their investigations were ongoing.

    Theory 4: The mystery boatmen

    The latest clues — following reports on Tuesday from the New York Times and German media — center on a boat, six people with forged passports and the tiny Danish island of Christiansø.

    According to these reports, a boat that set sail from the German port of Rostock, later stopping at Christiansø, is at the center of the Nord Stream investigations.

    Germany’s federal prosecutor confirmed on Wednesday that a ship suspected of transporting explosives had been searched in January — and some of the 100 or so residents of tiny Christiansø told Denmark’s TV2 that police had visited the island and made inquiries. Residents were invited to come forward with information via a post on the island’s Facebook page.

    Both the New York Times and the German media reports suggested that intelligence is pointing to a link to a pro-Ukrainian group, although there is no evidence that any orders came from the Ukrainian government and the identities of the alleged perpetrators are also still unknown.

    Podolyak, Zelenskyy’s adviser, tweeted he was enjoying “collecting amusing conspiracy theories” about what happened to Nord Stream, but that Ukraine had “nothing to do” with it and had “no information about pro-Ukraine sabotage groups.”

    Meanwhile, Germany’s Defense Minister Boris Pistorius warned against “jumping to conclusions” about the latest reports, adding that it was possible that there may have been a “false flag” operation to blame Ukraine.

    The Danish Security and Intelligence Service said only that their investigation was ongoing, while a spokesperson for Sweden’s Prosecution Authority said information would be shared when available — but there was “no timeline” for when the inquiries would be completed.

    The mystery continues.



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    ( With inputs from : www.politico.eu )

  • In Nord Stream bombings probe, German investigators see Ukraine link, reports say

    In Nord Stream bombings probe, German investigators see Ukraine link, reports say

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    BERLIN — German prosecutors have found “traces” of evidence indicating that Ukrainians may have been involved in the explosions that blew up the Nord Stream gas pipelines in September 2022, according to German media reports Tuesday.

    Investigators identified a boat that was potentially used for transporting a crew of six people, diving equipment and explosives into the Baltic Sea in early September. Charges were then placed on the pipelines, according to a joint investigation by German public broadcasters ARD and SWR as well as the newspaper Die Zeit.

    The German reports said that the yacht had been rented from a company based in Poland that is “apparently owned by two Ukrainians.”

    However, no clear evidence has been established so far on who ordered the attack, the reports said.

    In its first reaction, Ukraine’s government dismissed the reports.

    Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskyy, denied the Ukrainian government had any involvement in the pipeline attacks. “Although I enjoy collecting amusing conspiracy theories about the Ukrainian government, I have to say: Ukraine has nothing to do with the Baltic Sea mishap and has no information about ‘pro-Ukraine sabotage groups,'” Podolyak wrote in a tweet.

    Three of the four pipes making up the Nord Stream 1 and 2 undersea gas pipelines from Russia to Germany were destroyed by explosions last September. Germany, Sweden and Denmark launched investigations into an incident that was quickly established to be a case of “sabotage.”

    The German media reports — which come on top of a New York Times report Tuesday which said that “intelligence suggests that a pro-Ukrainian group” sabotaged the pipelines — stress that there’s no proof that Ukrainian authorities ordered the attack or were involved in it.

    Any potential involvement by Kyiv in the attack would risk straining relations between Ukraine and Germany, which is one of the most important suppliers of civilian and military assistance to the country as it fights against Russia’s full-scale invasion.

    According to the investigation by German public prosecutors that is cited by the German outlets, the team which placed the explosive charges on the pipelines was comprised of five men — a captain, two divers and two diving assistants — as well as one woman doctor, all of them of unknown nationality and operating with false passports. They left the German port of Rostock on September 6 on the rented boat, the report said.

    It added that the yacht was later returned to the owner “in uncleaned condition” and that “on the table in the cabin, the investigators were able to detect traces of explosives.”

    But the reports also said that investigators can’t exclude that the potential link to Ukraine was part of a “false flag” operation aiming to pin the blame on Kyiv for the attacks.

    Contacted by POLITICO, a spokesperson for the German government referred to ongoing investigations by the German prosecutor general’s office, which declined to comment.

    The government spokesperson also said: “a few days ago, Sweden, Denmark and Germany informed the United Nations Security Council that investigations were ongoing and that there was no result yet.”

    Russian foreign ministry spokesperson Maria Zakharova dismissed the reports of Ukrainian involvement in the Nord Stream bombings, saying in a post on the Telegram social media site that they were aimed at distracting attention from earlier, unsubstantiated, reports that the U.S. destroyed the pipelines.

    Veronika Melkozerova in Kyiv contributed reporting.



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    ( With inputs from : www.politico.eu )

  • Russian nuclear fuel: The habit Europe just can’t break

    Russian nuclear fuel: The habit Europe just can’t break

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    Europe is on track to kick its addiction to Russian fossil fuels, but can’t seem to replicate that success with nuclear energy a year into the Ukraine war.

    The EU’s economic sanctions on Russian coal and oil permanently reshaped trade and left Moscow in a “much diminished position,” according to the International Energy Agency. Coal imports have dropped to zero, and it is illegal for Russian crude to be imported by ship; only four countries still receive it by pipeline.

    That’s compared to the bloc getting 54 percent of its hard coal imports and one-quarter of its oil from Russia in 2020.

    Russian President Vladimir Putin’s decision to turn off the gas taps while the EU turned increasingly to liquefied natural gas deliveries from elsewhere caused the reliance on Moscow to tumble from 40 percent of the bloc’s gas supply before the war to less than 10 percent now.

    But nuclear energy has proved a trickier knot for EU countries to untie — for both historical and practical reasons.

    As competition in the global nuclear sector atrophied following the Cold War, Soviet-built reactors in the EU remained locked into tailor-made fuel from Russia, leaving Moscow to play an outsized role.

    In 2021, Russia’s state-owned atomic giant Rosatom supplied the bloc’s reactors with 20 percent of their natural uranium, handled a quarter of their conversion services and provided a third of their enrichment services, according to the EU’s Euratom Supply Agency (ESA).

    That same year, EU countries paid Russia €210 million for raw uranium exports, compared to the €88 billion the bloc paid Moscow for oil.

    The value of imports of Russia-related nuclear technology and fuel worldwide rose to more than $1 billion (€940 billion) last year, according to research from the Royal United Services Institute (RUSI). In the EU, the value of Russia’s nuclear exports fell in some countries like Bulgaria and the Czech Republic but rose in others, including Slovakia, Hungary and Finland, RUSI data shared with POLITICO showed.

    “While it is difficult to draw definitive conclusions from what is ultimately a time-limited and incomplete dataset, it does clearly show that there are still dependencies on, and a market for, Russian nuclear fuel,” said Darya Dolzikova, a research fellow at RUSI.

    Although uranium from Russia could be replaced by imports from elsewhere within a year — and most nuclear plants have at least one-year extra reserves, according to ESA head Agnieszka Kaźmierczak — countries with Russian-built VVER reactors rely on fuel made by Moscow.

    “There are 18 Russian-designed nuclear power plants in [the EU] and all of them would be affected by sanctions,” said Mark Hibbs, a senior fellow at Carnegie’s Nuclear Policy Program. “This remains a deeply divided issue in the European Union.”

    That’s why the bloc has struggled over the past year to target Russia’s nuclear industry — despite repeated calls from Ukraine and some EU countries to hit Rosatom for its role in overseeing the occupied Ukrainian Zaporizhzhia nuclear plant, and possibly supplying equipment to the Russian arms industry.

    “The whole question of sanctioning the nuclear sector … was basically killed before there was ever a meaningful discussion,” said a diplomat from one EU country who spoke on condition of anonymity.

    The most vocal opponent has been Hungary, one of five countries — along with Slovakia, Bulgaria, Finland and the Czech Republic — to have Russian-built reactors for which there is no alternative fuel so far.

    Bulgaria and the Czech Republic have signed contracts with U.S. firm Westinghouse to replace the Russian fuel, according to ESA chief Kaźmierczak, but the process could take “three years” as national regulators also need to analyze and license the new fuel.

    The “bigger problem” across the board is enrichment and conversion, she added, due to chronic under-capacity worldwide. It could take “seven to 10 years” to replace Rosatom — and that timeline is conditional on significant investments in the sector.

    While Finland last year scrapped a deal to build a Russian-made nuclear plant on the country’s west coast — prompting a lawsuit from Rosatom — others aren’t changing tack.

    Slovakia’s new Mochovce-3 Soviet VVER-design reactor came online earlier this month, which Russia will supply with fuel until at least 2026. 

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    Russia’s nuclear energy was not initially included in EU sanctions over Russian President Vladimir Putin’s invasion of Ukraine | Eric Piermont/AFP via Getty Images

    Hungary, meanwhile, deepened ties with Moscow by giving the go-ahead to the construction of two more reactors at its Paks plant last summer, underwritten by a €10 billion Russian loan.

    “Even if [they] were to come into existence, nuclear sanctions would be filled with exemptions because we are dependent on Russian nuclear fuel,” said a diplomat from a second EU country.

    This article has been updated with charts depicting Russia’s nuclear exports.



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    ( With inputs from : www.politico.eu )

  • John Kirby denies U.S. sabotaged Nord Stream pipelines

    John Kirby denies U.S. sabotaged Nord Stream pipelines

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    Hersh wrote on Substack earlier this month, based on a single anonymous source, that the U.S. was involved in the sabotage of the pipelines.

    Asked by Bream whether the administration would have an obligation to inform Congress of such an operation, Kirby said: “Obviously, we keep Congress informed appropriately of things both classified and unclassified. But I can tell you now, regardless of the notification process, there was no U.S. involvement in this.”

    Hersh is a Pulitzer-winning journalist best known for his expose of the 1968 My Lai Massacre committed by U.S. troops in Vietnam and the Pentagon’s efforts to cover it up. In 2004, he chronicled the military’s torture of prisoners at Abu Ghraib in Iraq. But he has also drawn criticism for some of his reporting in recent years, including his challenges to the official U.S. account of the killing of Osama bin Laden in Pakistan.

    Russia, which invaded Ukraine a year ago this week, has relied on its income from energy exports to fund the war. President Joe Biden sanctioned the Russian company behind the pipelines last year.

    David Cohen contributed to this report.

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    ( With inputs from : www.politico.com )

  • Putin is staring at defeat in his gas war with Europe

    Putin is staring at defeat in his gas war with Europe

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    There’s more bad news for Vladimir Putin. Europe is on course to get through winter with its vital gas storage facilities more than half full, according to a new European Commission assessment seen by POLITICO.

    That means despite the Russian leader’s efforts to make Europe freeze by cutting its gas supply, EU economies will survive the coldest months without serious harm — and they look set to start next winter in a strong position to do the same.

    A few months ago, there were fears of energy shortages this winter caused by disruptions to Russian pipeline supplies.

    But a combination of mild weather, increased imports of liquefied natural gas (LNG), and a big drop in gas consumption mean that more than 50 billion cubic meters (bcm) of gas is projected to remain in storage by the end of March, according to the Commission analysis.

    A senior European Commission official attributed Europe’s success in securing its gas supply to a combination of planning and luck.

    “A good part of the success is due to unusually mild weather conditions and to China being out of the market [due to COVID restrictions],” the official said. “But demand reduction, storage policy and infrastructure work helped significantly.”

    Ending the winter heating season with such healthy reserves — above 50 percent of the EU’s roughly 100bcm total storage capacity — removes any lingering fears of a gas shortage in the short term. It also eases concerns about Europe’s energy security going into next winter.

    The positive figures underlie the more optimistic outlook presented by EU leaders in recent days, with Energy Commissioner Kadri Simson saying on Tuesday that Europe had “won the first battle” of the “energy war” with Russia.

    EU storage facilities — also vital for winter gas supply in the U.K., where storage options are limited — ended last winter only around 20 percent full. Brussels mandated that they be replenished to 80 percent ahead of this winter, requiring a hugely expensive flurry of LNG purchases by European buyers, to replace volumes of gas lost from Russian pipelines.

    The wholesale price of gas rose to record levels during storage filling season — peaking at more than €335 per megawatt hour in August — with dire knock-on effects for household bills, businesses’ energy costs and Europe’s industrial competitiveness.

    Gas prices have since fallen to just above €50/Mwh amid easing concerns over supplies. The EU has a new target to fill 90 percent of gas storage again by November 2023 — an effort that will now require less buying of LNG on the international market than it might have done had reserves been more seriously depleted.

    “The expected high level of storages at above 50 percent [at] the end of this winter season will be a strong starting point for 2023/24 with less than 40 percent to be filled (against the difficult starting point of around 20 percent in storage at the end of winter season in 2022,” the Commission assessment says.

    Analysts at the Independent Commodity Intelligence Services think tank said this week that refilling storages this year could still be “as tough a challenge as last year” but predicted that the EU now had “more than enough import capacity to meet the challenge.”  

    Across the EU, five new floating LNG terminals have been set up — in the Netherlands, Greece, Finland and two in Germany — providing an extra 30bcm of gas import capacity, with more due to come online this year and next.  

    However, the EU’s ability to refill storages to the new 90 percent target ahead of next winter will likely depend on continued reduction in gas consumption.

    Brussels set member states a voluntary target of cutting gas demand by 15 percent from August last year. Gas demand actually fell by more than 20 percent between August and December, according to the latest Commission data, partly thanks to efficiency measures but also the consequence of consumers responding to much higher prices by using less energy.

    The 15 percent target may need to be extended beyond its expiry date of March 31 to avoid gas demand rebounding as prices fall. EU energy ministers are set to discuss the issue at two forthcoming meetings in February and March.



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    ( With inputs from : www.politico.eu )