Prices jumped by nearly 25% after Gazprom cut supplies via Nord Stream pipeline
© Getty Images / Stephen Sheridan Photography
Prices for natural gas in Europe have surged on Wednesday after Russian energy giant Gazprom announced plans for further cuts to supply volumes via the Nord Stream pipeline.
Natural gas futures on the Netherlands-based TTF trading hub climbed over $1,300 per 1,000 cubic meters, marking a surge of nearly 25%.
Earlier this week, gas prices in the region spiked by nearly 11% after Gazprom said that was reducing gas deliveries via the Nord Stream pipeline after German company Siemens failed to return gas pumping units to its compressor station on time.
Overall gas flows via the Nord Stream pipeline will decrease by roughly 60%, from 167 million cubic meters per day to just 67 million cubic meters per day, according to Gazprom.
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Siemens failed to return turbines to Gazprom
The Russian energy corporation said it was forced to reduce gas supplies to Germany via the Nord Stream pipeline this week due to the parts shortage. Siemens announced on Wednesday that it was impossible to deliver the gas turbines to Gazprom after they’d been repaired in Canada, due to the sanctions imposed on Russia.
It added that the German and Canadian governments were aware of the problem, and that it was working on a viable solution.
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