Posted on 06/20/2022 1:52:52 AM PDT by Mount Athos
European natural gas prices rose after rallying 43% last week as Russia’s steep supply cuts put governments on high alert amid a mounting possibility of rationing.
Benchmark futures rose as much as 8.1%, with shipments via the Nord Stream remaining at just 40% of capacity.
Supply is likely to remain curbed with Gazprom PJSC’s chief Alexey Miller warning there’s no solution for now for issues with the gas turbines essential for the functioning of the pipeline.
That’s forcing major European consumers to withdraw gas from the reserves they have been building for the winter when demand typically peaks.
The government has asked Germans to reduce consumption and plans to rely more on its coal plants to keep the lights on as gas supply remains uncertain.
Europe has been scouring the world for extra shipments, and boosting imports of liquefied natural gas to fill any shortfall. But a prolonged outage at the Freeport LNG plant in the Texas has made fewer cargoes available from the US, which the continent was depending on to fill storage sites. It’s also having to compete with Asian buyers for cargoes at a time when the global market is stretched.
“Europe will need to battle with Asia and Latin America for any incremental LNG supply to facilitate reduction of Russian pipeline imports. That means higher prices as we saw last week.”
Italy’s Eni SpA, one of the European buyers that have seen their Russian supplies curbed, will have its deliveries on Monday only partially confirmed. The country may trigger its emergency gas plan as soon as this week if Russia continues to curb supplies, a move that may involve asking companies to voluntarily limit energy consumption, according to people familiar with the situation.
(Excerpt) Read more at finance.yahoo.com ...
Germany sent natural gas turbines to Canada for repairs, and Canada won’t return them due to sanctions.
This resulted in a big dropoff in gas supply via Nordstream 1 to Germany.
Germany is desperately trying to get them back quickly, but in the meantime havok may come for Germany and Italy
Time to open NSII.
Cut off NordStream 1 completely. Let the stinking Putinistas bathe in their gas.
It will get sold to India or China instead. -shrug- They won’t drown in their own gas.
As it should. They pooh-poohed the Trump initiative to set up a more substantial gas trade with the US. Germany in particular was quite hostile to the idea of bringing more North American gas into Europe to wean them off Russian supplies. Said it was a stupid idea and that they didn’t have any need for it.
Whoopsie.
Canada and Germany are NATO “partners.” With “partners” like this, who needs enemies. These Deep State fools just will not stop making things worse for themselves.
Given that can occur, Europe could reverse course.
They can’t sell the gas to China that easily.
Building new ones is going to take years, or even decades—Siberia is a big place.
Also note that the Chinese will see that they are the sole customer so will drive a hard bargain. China always plays the long game. They’ll wait until Putin is desperate enough to sign away his independence.
the Deep State are the pro-Putin folks who abound. Those who constantly say it is ok for a nazi dictator like Putin to invade other countries
Here is the definition of Deep State:
Pro-Zelensky, pro-Biden, pro-Ministry of Disinformation, pro-interventionist like Biden, her ex boss.
Trump, Russia, and How Not to Lose the Information War With Nina Jankowicz
https://irishtechnews.ie/trump-russia-the-information-war-nina-jankowicz/
She herself said she is Polish/Ukrainian. She worked for the Ukrainian government before working for Biden.
Her job was to attack Trump and knock down anything said negatively about Biden or Ukraine.
I wonder if Trump delivered a big can of “I told you so?”
You’re a real economic genius.
Wonderful General too…
The boomeranging suicide sanctions need to be ended immediately.
Amazing lack of foresight those Europeans use.
They manage to find a way to screw up with depressing regularity.
Did the virtue signaling krauts clear it with Scoldielocks first?
Because they stupidly ignored Trump, today Germany has no LNG terminal to receive LNG shipments. They have had to rent four floating facilities until they can build their own permanent docking point. The rented facilities supply only 20% of what the need. The rest they have to pipe in from Holland, France, etc.
Italy is one of the PIIGS.
Did Gazprom cut the flow...
Or did Italy’s check bounce?
Though I'd argue there are no prudent countries in the EU.
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