European gas prices advance on Russian pipeline uncertainty

Bloomberg

European natural gas prices rose for a fourth consecutive session, with little clarity on future flows via a major Russian pipeline.
While the Nord Stream pipeline is sending gas to Germany at a consistent rate of 40% of capacity following the end of maintenance on July 21, Russian President Vladimir Putin warned that this could decline to 20% if a turbine isn’t received in time to replace another that’s likely to need repairs. Benchmark European prices climbed as much as 6.7%.
The critical piece of equipment is still in Germany after missing a ferry sailing on Saturday to Helsinki amid paperwork delays, Russian newspaper Kommersant reported. If the documents are exchanged, it could be transported in the next few days, it said. The component was first stranded in Canada after routine repairs because of sanctions on Russia over its invasion of Ukraine.
The Kremlin tried to ease the market, saying the repaired component will be re-installed, but warned that any further sanctions on Russia may weigh on how much gas it can supply to Europe.
“The turbine will be installed after all the technological formalities have been completed, and the flows will be at the
levels that are technologically possible,” Kremlin spokesman Dmitry Peskov said. The situation may change “if Europe continues its course of absolutely recklessly imposing sanctions and restrictions,” he said.
Uncertain about the future level of Russian flows, the European Union is on a mission to save as much gas is possible ahead of the peak winter demand season.