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Germany waiting for Russian go-ahead to return Nord Stream gas turbine: Scholz

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Germany waiting for Russian go-ahead to return Nord Stream gas turbine: Scholz

Highlights

Turbine is ready to be transported to Russia: Scholz

All relevant documentation prepared, needs Russian approval

Nord Stream running at just 20% of capacity since July 27

  • Author
  • Stuart Elliott
  • Editor
  • Jonathan Fox
  • Commodity
  • Natural Gas

German Chancellor Olaf Scholz Aug. 3 accused Russia of blocking the return of a key Nord Stream gas turbine to the Portovaya compressor station, saying the situation would be easily resolved if Gazprom gave the go-ahead.

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Russian gas flows via Nord Stream to Germany have been running at just 20% of capacity since July 27, with Gazprom blaming the reduction on maintenance issues with a number of turbines at Portovaya.

One turbine, which had been stuck in Canada after maintenance by Siemens Energy, has now been returned to Germany after Ottawa approved a waiver from sanctions, but is yet to be transported back to Portovaya.

Scholz, speaking in front of the turbine at a press conference at the Siemens Energy factory in Mullheim, Germany, said there was "nothing stopping" its return to Russia other than a refusal to date from Moscow to take delivery.

"This turbine can be used. Everything is in place for its return. There are no problems and no sanctions preventing its use," he said.

"Now someone needs just to say: 'I'd like to have it'. Then it will be quickly returned," he said. "There is no reason why this delivery cannot take place."

Gazprom could not be reached for immediate comment Aug. 3, but has repeatedly said it required documentation from Siemens to show there were no risks in using the turbine from a legal perspective.

The reduced Nord Stream flows have seen European gas prices surge back close to the record highs seen in March in the immediate aftermath of Russia's invasion of Ukraine.

The Dutch TTF month-ahead price reached an all-time high of Eur212.15/MWh on March 8, according to Platts price assessments from S&P Global Commodity Insights, and was last assessed at Eur203.70/MWh on Aug. 2.

Contractual obligations

Scholz also said Gazprom could meet its contractual obligations to German buyers "at any time" by using any of the transport routes available to it.

He said as well as Nord Stream, Gazprom could use the pipeline network in Ukraine and -- in theory -- the Yamal pipeline through Belarus and Poland, which he said Russia had itself sanctioned.

"Gazprom's supply obligations can be fulfilled at any time," he said, adding that the technical reasons for the reduced supply were not justifiable.

Gazprom notified Germany's Uniper last month that it was declaring force majeure on its contractual gas supply, saying the Nord Stream reductions were not its fault, but the notice was rejected by Uniper.

Siemens Energy CEO Christian Bruch, also speaking during the press conference Aug. 3, said the turbine was one of six such units that could be used at Portovaya, along with two other smaller turbines.

For Nord Stream to flow at its full capacity of 167 million cu m/d, five of the main turbines need to be operational. With just one operational turbine, flows were therefore reduced to just 20% of capacity, or around 33 million cu m/d.

"It is in our best interest, with support from the German government, to return this turbine to Russia," Bruch said.

He said all the documents had been prepared from Siemens Energy's side and that all that was outstanding was the go-ahead from Gazprom, which, he said, "we don't have."

"So we have not been able to transport the turbine," he said, adding that the company was doing everything it could to resolve the situation.