Published 20:27 IST, July 27th 2022
US worried gas supply problems will hit 'unity against Russia'; terms it 'test' for Europe
Biden administration is worried that the European Union's solidarity against Moscow may be weakened by the gas shortages brought on by decreased Russian supply.
In US, the Joe Biden administration is worried that the European Union's solidarity against Moscow may be weakened by the gas shortages brought on by decreased Russian supply, according to a media report. CNN reported, quoting US officials, that Amos Hochstein, the US presidential coordinator for global energy, has reportedly left for Paris and Brussels to discuss US-European contingency planning in case of winter gas shortages.
CNN quoted an US official, who wished to remain anonymous, as saying, "The impact on Europe could boomerang back onto the US, spiking natural gas and electricity prices. It will also be a major test of European resilience and unity against Russia."
Further, the United States is also planning to discuss measures to increase nuclear power output with Europe this week. The US is particularly hoping to persuade the German government to delay its plans to phase down the use of nuclear power and to keep operating its three nuclear power facilities longer, the media agency reported.
On July 25, Russia's energy behemoth Gazprom said that it had to cease the functioning of another Siemens-made turbine because it had reached its capital maintenance point. As a result, the Portovaya compressor station's capacity will decrease by almost half, from 67 to 33 million cubic metres per day. Notably, the Russian President Vladimir Putin issued a warning last week on the matter.
Nord Stream pipeline has been operating at only 40% of its potential
Since mid-June, the Nord Stream pipeline has been operating at only 40% of its potential (67 million cubic metres per day), as a result of the delayed return of a Siemens turbine that was sent to Canada for maintenance. On July 9, Canada agreed to repatriate the repaired turbine after receiving multiple requests from Germany. Before the turbine could be imported and placed in Russia and other turbines could be shipped for repairs, according to Gazprom, difficulties involving EU and UK sanctions must be resolved.
According to the European Commission, transit equipment for gas is not covered by EU sanctions on Russia. Gas prices have risen after Russia threatened to halt gas supply to Germany and other central European countries earlier this week. Following Russia's invasion of Ukraine, European gas prices are up about 2%, trading above an earlier all-time high.
Updated 20:27 IST, July 27th 2022