France preparing for possible halt in Russian gas supply to EU via Nord Stream 1

France, an EU nation that heavily relies on Russian gas is currently preparing for the worst-case scenario of disruption to the Russian supply. Paris’ leading oil and gas corporations including Engie, TotalEnergies, and Gaz de France are exploring an alternative option to import the oil in case Russia snaps the Nord Stream 1 pipeline, which is not targeted by Western sanctions. Moscow had threatened Europe that it had yet not taken reciprocal measures for a barrage of sanctions imposed on its private banks and political entities. 

Russian Deputy Prime Minister Alexander Novak warned "catastrophic consequences” for all of Europe, asserting that Russia reserves “full right” to stop supplying gas to the EU that depends on Moscow for roughly 40% of the total gas needs. Members of the French energy industry, including oil and gas have now scrambled to hold emergency meetings to explore viable alternatives for oil purchases. This comes as German Chancellor Olaf Scholz informed the press that his country may not be able to replace Russian gas anytime soon. Russia’s energy giant Gazprom, though, continues to supply to the foreign customers using the Ukrainian gas transit system “as normal” despite the war in Kyiv. Reasoning it, the Russian company cited its contracts obligation. 

'This risk is low but preparing for it..': French sources 

"This risk is low, especially since [Russian gas company] Gazprom has always delivered [gas] but we are preparing for it," a French source reportedly said, according to Russian state-affiliated media Sputnik. French Presidential office instructed energy firms to try "releasing as many gas cargoes as possible,” the source, who spoke on condition of anonymity stated. France is also focusing on filling gas reserves to avoid the dearth of the supply and mitigate the impact of the global oil price hike "ahead of next winter.”

The EU nation also imports liquefied natural gas (LNG) by sea from Japan, Egypt, Qatar, the United States, Australia, and Asian countries, the French presidential office stated. As the West sanctioned the Russian oil supply, Shell, the largest EU oil corporation secretly bought a cargo for the discounted price of $30/bbl, a move that attracted backlash from Ukraine. The company, in a statement, justified, “We have acted throughout in accordance with what we have understood was the intent to allow energy flows from Russia for the time being in order to provide the security of energy supply.”

EU has also been reviewing contingency plans due to the expected oil supply shock after the Russian ban on export. Both the EU and US have been seeking alternative supplies. “Our models now show that for partial disruption or further decrease of gas deliveries by Gazprom, we are now rather on the safe side,” European Commission President Ursula von der Leyen told reporters in Strasbourg earlier. Russia supplies about 40% of Europe’s natural gas, after the supply disruption was felt, the bloc has held discussions with Egypt, Azerbaijan, Nigeria and South Korea about purchasing gas and liquefied natural gas (LNG) via contract swaps, von der Leyen had informed.