Ukraines Urges Canada to Ignore Russia’s Request to Return Nord Stream 1 Turbine
Russia will increase its gas supplies to Europe if a turbine necessary for Nord Stream 1 that is currently undergoing repair in Canada is returned.
But Ukraine has asked Canada not to listen to Russia, and not to return the gas turbine to Gazprom, saying latter’s major has enough turbines to keep gas flowing to Europe at full capacity.
Quoting a Ukrainian government official, Reuters reported last weekend that heeding Russia’s request would amount to Canada violating its own sanctions.
“The sanctions forbid the transfer of any equipment related to gas. If, God forbid, this decision is approved, we will undoubtedly appeal to our European colleagues that their approach must be reassessed. Because if countries do not follow decisions they have agreed about sanctions, how can we talk about solidarity?” the unnamed Ukrainian official told Reuters.
Shell Still Loading from Australian LNG Facility Despite Strike
Notwithstanding industrial action, reports say, up to last week, Shell continues to load liquefied natural gas (LNG) from the offshore Prelude facility in Australia.
The multinational warned a week ago there would be loading disruptions until at least mid-July at Prelude because of a workers’ strike. The floating LNG facility has an annual capacity of 3.6 million tons.
The news of a halt is bad news for gas importers after Russia reduced the flow along the Nord Stream 1 pipeline by 60%, and an explosion took the Gulf Coast Freeport LNG out of commission for at least three months.
A vote on a new proposal by Shell is expected this week. The Prelude FLNG facility, is one of a series of massive-scale LNG projects that made Australia to briefly displace Qatar as world leader of LNG exports sometime ago.
U.S. LNG Top Producer Wants Exemption From Pollution Limit
Us largest LNG producer, Cheniere Energy, has requested an exemption from an Environmental Protection Agency (EPA) pollutant limit on the gas-fired turbines it uses, so it won’t be forced to shut some capacity.
The EPA includes, as of August, two types of stationary gas-fired turbines in the rule for limits on air pollutants such as formaldehyde and benzene. Cheniere uses such turbines at its facilities in Texas and Louisiana, and has asked the EPA this spring to exempt it from the rule.
A slowdown in U.S. LNG shipments is the last thing Europe needs right now as it scrambles to get any non-Russian gas to stock up ahead of the winter. The EU has been importing record volumes of American LNG in recent months.
“Russia’s recent steep cuts in natural gas flows to the EU mean this is the 1st month in history in which the EU has imported more gas via LNG from the US than via pipeline from Russia,” Birol tweeted last week.
Nordic Electricity Prices Hit Unprecedented Levels
The Nordic countries, which rely mostly on hydro and wind power, are enjoying a large drop in prices for the days ahead, even as Germany and France are grappling with record electricity prices amid low gas supply from Russia and low French nuclear power output.
Reports say lower demand due to summer holidays, water filling reservoirs, and windy weather these days led to an 80% slump in day-ahead power prices for the Nordic region as at Friday. The average electricity prices across northern Europe for Saturday plunged to as low as $4.24 (4.17 euro) per megawatt-hour (MWh) on the Nord Pool exchange in Oslo, according to Bloomberg’s estimates.
To compare, the day-ahead prices in France were at $338 (333 euro) per MWh and at $150 (148 euro) per MWh in Germany. The day-ahead prices in the Nordic countries hit the lowest since November 2020, on the back of a combination of increased wind power production, people leaving on summer holidays, and sufficient water for hydro-power generation.
Be the first to know when we publish an update
