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Canada dealt a painful blow to Nord Stream

15 June 2022

Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance commented to the Vzglyad business newspaper on the risks of reducing Russian gas supplies via the Nord Stream-1 gas pipeline and possible ways to overcome them.

Gazprom warned that due to the untimely return of gas pumping units at the Portovaya compressor station from repair by the German company Siemens and “revealed technical engine malfunctions” (an order from Rostekhnadzor on a temporary ban on activities was received), only three units can be used. In this regard, gas supplies via Nord Stream had to be reduced from 167 to 100 million cubic meters per day, that is, by 40%.

“Russia received an unexpected blow, which will certainly affect the volume of gas transportation through Nord Stream 1 until a solution to the problem is found,” Aleksey Gromov says.

In his opinion, if we are talking about the prohibitive sanctions of Canada, then the German company will definitely not help Gazprom solve this problem with the help of gray schemes, through the supply of units through third countries, etc.

The worst scenario is that, in fact, Siemens' refusal to service and repair compressor stations could lead to a complete shutdown of Nord Stream 1.

“This will be another unpredictable black swan for the European gas market, with negative consequences for both Gazprom and Germany. Moreover, the blame will be laid on Gazprom, because it is the company, as the operator of the system, who is obliged to maintain the safety of the gas pipeline. Gazprom, of course, can refer to Canadian sanctions against Siemens, but the Europeans will not care, since Canadian sanctions are Gazprom's problems,” the industry expert argues. 

Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department
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