BLOOMBERG published - Aug 22, 2022 - European gas prices surged after Moscow’s move to shut a major pipeline ramped up fears of a prolonged supply halt, leaving Germany once again guessing as to how much Russian fuel it can count on this winter.
Benchmark futures rose as much as 16%, also driving up electricity prices to fresh records. The key Nord Stream pipeline will stop for three days of maintenance on Aug. 31, again raising concerns that the link won’t return to service as planned after the works. Europe has been on tenterhooks about shipments through the link for weeks, with flows resuming only at very low levels after it was shut for works last month.
European authorities have repeatedly warned of the possibility of a complete shut down of Russian supplies as the Kremlin retaliates for sanctions imposed because of its war in Ukraine. Germany, Europe’s biggest gas consumer, is looking for alternatives but is unlikely to be able to replace all Russian imports. The nation and others in the continent are reversing energy policies by relying more heavily on coal and bringing back nuclear plants as they look to avoid shortages.