Wednesday, December 8 2021 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Gas News
Today's News
Yesterday's News
Week of Dec 06
Week of Nov 29
Week of Nov 22
Week of Nov 15
Week of Nov 08
By Topic
By News Partner
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Gas News > News Article

    Share by Email E-mail Printer Friendly Print

    Putin is bluffing: Russia has no capacity to supply gas to Europe


    October 8, 2021 - CE Noticias Financieras

     

      The announcement by Russian President Vladimir Putin to guarantee gas supplies to Europe hides the dark intention to accelerate the commissioning of the Gazprom pipeline, which is to supply Russian gas to Germany. Experts doubt Russia's ability to increase its production to meet domestic and European demand without the launch of Nord Stream 2.

      The energy peace has been short-lived. The price of natural gas futures contracts in Europe is once again above 100 dollars. The balm offered by Putin has disappeared in two days. The most repeated word among experts is blackmail to describe the Russian president's announcement. All eyes are on the start-up of the Nord Stream 2 pipeline, which was recently completed and still needs the approval of the regulators before it can be put into operation.

      Putin's offer is nothing more than a big bluff, considering that Russia's capacity to supply European and its own demand is limited. "The Russian domestic gas market is also very tight, with inventories low, production near its peak and winter just around the corner, which limits gas export capacity," explains Adeline Van Houtte, Europe analyst at the Economist Intelligence Unit.

      I don't think Gazprom can deliver more than 190 billion cubic meters of gas to Europe this year and there is little sign that the company has increased deliveries," the expert insists. The Russian state-owned company is one of the main suppliers of gas to Europe, accounting for 35% of consumption.

      The International Energy Agency put the spotlight of the European gas crisis on Russia. Yesterday the top executive Fatih Birol assured that it could increase exports to Europe by 15% for the winter. Mike Fulwood, a senior research fellow at the Oxford Institute for Energy Studies, expressed doubts on CNBC that Russia will also be able to supply more gas to Europe, noting that production is already at record levels.

      "Russia has faced the same demand pressures as Europe," he explained. "Last year Russia experienced a very cold winter and needs to replenish its own reserves," says the expert. For Fulwood, neither the entry into play of Nord Stream 2 would solve the problem.

      But experts do point to the controversial infrastructure and the approval of European regulators as the main reason for Putin's bluffing. A month ago Gazprom laid the last piece of the pipeline, but there is still a long legal road ahead before it can begin operating. Denmark has already given the go-ahead, but the Bundesnetzagentur, Germany's energy regulator, may take months.

    TOP

    Other Articles - International


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2021 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.