Russia Resumes Gas Flows To Europe Via Nord Stream Pipeline - InvestingChannel

Russia Resumes Gas Flows To Europe Via Nord Stream Pipeline

Russia has resumed sending natural gas to Europe through the Nord Stream pipeline following

a maintenance shutdown.

Shipments of natural gas from Russia returned to 40% capacity, the level before flows were

halted for 10 days as part of planned maintenance work.

The resumption of natural gas flows eases fears that Russian President Vladimir Putin would

keep the pipeline shutdown to punish Europe over the economic sanctions levied against

Russia following its invasion of Ukraine.

The European Union is racing to stockpile natural gas ahead of the cold winter months, and as

the continent grapples with its worst energy crisis in years.

Moscow has been curbing gas shipments to Europe in recent months, and Europe is unlikely to

have enough supply to keep homes warm during the winter if Russia completely shuts off

supplies.

In Germany, gas-storage facilities are at about 65% capacity, short of the government’s 90%

target. European gas prices traded 5.7% lower at 146.25 Euros a megawatt-hour once the Nord

Stream pipeline came back online.

European gas prices have surged during the last year, climbing to a record shortly after Russia

invaded Ukraine in February. While prices have eased since then, they are still several times

higher than the average of the past five years.

Concerns about gas shortages have spread to every market of Europe, weakening the Euro

currency and bringing it near parity with the U.S. dollar.

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