Gas crisis: American LNG coming to Europe

 As european countries struggle with high energy prices along with empty gas reservoirs, Cheniere Energy is sending providential LNG tankers to Europe. Gas prices drop, writes WELT:

Is it the spirit of Christmas or the invisible hand of the market? The fill levels in German and European gas storage facilities are at an all-time low, energy prices jump to new, alarming record levels every day - a fleet of American gas tankers appears on the western horizon as a savior in an emergency to alleviate Europe's energy poverty.

What sounds like a Christmas fairy tale is reality: According to information from the Bloomberg news agency, at least ten tankers with liquefied gas are on their way to Europe. "Another 20 ships seem to be crossing the Atlantic, but have not yet announced their final destination," report the market watchers. "The US cargoes will help offset the lower shipments from Russia, Europe's main supplier."

is it the spirit of Christmas or the invisible hand of the market? The fill levels in German and European gas storage facilities are at an all-time low, energy prices jump to new, alarming record levels every day - a fleet of American gas tankers appears on the western horizon as a savior in an emergency to alleviate Europe's energy poverty.

Gas prices: reflections about Russia as the main supply source

 French newspaper Le Monde reflects about the strategic options of the Bloc concerning gas supply in the light of skyrocketing energy prices and the clatter of boots at the border to Ukraine:

Europe is entering winter, and the question is no longer whether it will have gas to heat itself and run the factories, but at what price. It has flared up in recent weeks and costs six times more than a year ago. The bill for individuals and manufacturers will be heavy in 2022. The functioning of the European market lends itself to this, as does the economic context: demand is strong during this season, activity remains strong despite the threat of the Omicron variant of SARS-CoV -2, storage is at a very low level (63%) and the unexpected shutdown of French nuclear power plants is increasing tensions.

If there were just that ... Gas prices, and by extension electricity prices, are also trending against the backdrop of Russian boots on Ukraine's eastern borders. Russia supplies a third of the European Union (EU) gas. This share, greater than that of Norway and Algeria combined, puts Vladimir Putin in a strong position to derive double benefit, financial and political, from the situation. The Russian president has been playing this market power for months by asking Gazprom not to export more than expected by its contracts with European customers.

Nord Stream 2: operator ramps up pressure, fills pipeline with gas

 Despite the fact that the controversial pipeline still doesn't have the necessary operating licence, the pipeline is being flooded with gas "to establish the necessary line pressure", as the operating company puts it, writes WELT:

The operating company of the controversial Baltic Sea pipeline Nord Stream 2 started filling the second line on Friday. According to the company, this is intended to build up the technical line pressure required for the gas flow.

“The pre-commissioning work on the second line was successfully completed to ensure the integrity of the pipeline,” explained the Swiss-based subsidiary of the Russian state monopoly Gazprom. The pipeline was "built in accordance with applicable technical and industrial standards and independently certified".

The early filling of the pipelines at a time of extremely high gas prices is surprising, as the operating license for the pipeline will still be months away. The Federal Network Agency (BNetzA) had suspended the approval process for pipeline operation for the time being because Gazprom had not yet implemented the formal conditions of the European gas directive.

According to the European competition rules, the owner and user of a line monopoly must not be identical. Gazprom must therefore set up an operating company that is formally and personally independent in accordance with the German legal form in order to meet this requirement. Only then can the certification of the gas pipe be completed.

Gazprom is working on the implementation. But decisions will probably "not be made in the first half of the year", said the President of the Federal Network Agency, Jochen Homann, with a view to 2022. The process will continue as soon as the necessary documents are submitted in such a way that "they can be checked" - but that alone has Nord Stream 2 AG in hand.

The BNetzA is under political pressure from various sides. Opponents of the project, including the USA, are demanding that the federal government not allow the line to go into operation for geopolitical reasons. Several EU countries are also calling on Germany to use the pipeline in the Ukraine conflict as a means of pressure against Russia.

Supporters of the pipeline project therefore suspect that the approval process of the Federal Network Agency could drag on longer than is actually necessary due to this political pressure. Some want to see the formulation of the BNetzA president as an indication that time leeway should be used to the maximum. Homann had pointed out that after the examination by the BNetzA, the whole thing would still go to the European Commission. This has "a lot of time to deal with it again".

If Gazprom is already filling the pipeline between St. Petersburg and Greifswald with gas, that could - intentionally or only as a welcome side effect - exert counter pressure on the licensing authority. Because gas prices in Germany and Europe are currently at a record level. In addition, a physical shortage of gas cannot be ruled out for industrial companies and power plant operators.

Operators of gas power plants in Germany are already warning of the increased risk of business interruptions due to a lack of gas deliveries this winter. The industry association “Trading Hub Europe” (THE), which is responsible for the gas supply, is also trying to organize additional gas volumes especially for Bavaria for February by means of a “special tender”.

If there were physical supply bottlenecks in Germany in the event of an extremely cold and long winter, politicians could come under pressure to justify why gas volumes from Nord Stream 2 are not used that are already physically available at the landing point Greifsland on German territory.

How sensitive the gas market is with regard to the politically sensitive supply situation was shown recently by reactions to a statement by the Federal Foreign Minister. Annalena Baerbock (Greens) had pointed out that "as things stand, this pipeline cannot be approved because it does not meet the requirements of European energy law." Market participants and media representatives misinterpreted as a political declaration of intent.

As a result, gas prices in European wholesale rose significantly over several days. Chancellor Olaf Scholz (SPD) only pointed out at the end of this week that Baerbock's statements had been misunderstood: The commissioning of the pipeline was not a political question, Scholz made clear: For commissioning, compliance with European law was only required in one sub-aspect clear up. "An authority in Germany decides on this quite apolitically."

Nord Stream 2: is Gazprom blackmailing Germany with gas price?

As previously reported, experts warned for years  that Gazprom could use its dominant position as a gas supplier to blackmail Germany and other european states. 

According to expertes, this is what is happening right now. Now that the pipeline is fully constructed, there is still an operating license pending and the question of conformity with EU laws is unsolved before the pipeline is ready-to-use. However Gazprom presses forward to get the pipeline operational as soon as possible and points to hiking gas prices writes german newspaper BILD:

Bad news from Moscow for German gas customers!

A few days after the completion of the Russian Baltic Sea pipeline Nord Stream 2, it becomes clear: Russian President Vladimir Putin is using the pipe precisely for what experts have warned about for years. He blackmailed Germany and Europe. Anyone who does not play according to the rules of the state company Gazprom pays heavily or even has to freeze in winter.

First comeuppance: the price for Russian natural gas in Europe has already risen by a staggering 444 percent in the last twelve months.

A price increase that experts attribute to a large extent to the artificial reduction in imports by Russia's state-owned company Gazprom.

Explosive: Germany is more dependent on Russian gas than ever before. 55 percent of the natural gas burned in this country comes from Putin's empire.

Bad news from Moscow for German gas customers!

A few days after the completion of the Russian Baltic Sea pipeline Nord Stream 2, it becomes clear: Russian President Vladimir Putin is using the tube for exactly what experts have warned about for years. He blackmailed Germany and Europe. Anyone who does not play according to the rules of the state company Gazprom pays heavily or even has to freeze in winter.

First receipt: the price for Russian natural gas in Europe has already risen by a staggering 444 percent in the past twelve months.

A price increase that experts attribute in large part to the artificial reduction in imports by Russia's state-owned company Gazprom.

Explosive: Germany is more dependent on Russian gas than ever before. 55 percent of the natural gas burned in this country comes from Putin's empire.

Russia's gas giant Gazprom has not only reduced transit to Europe to a contractually agreed minimum through Ukraine - since the summer, significantly less gas has been flowing through the Yamal gas pipeline to Germany via Poland than would be necessary to ensure medium-term supply.

The result: Germany's natural gas storage facilities are currently only 63 percent full. Last year at this time it was 94 percent.

In addition, in July, for the first time in the history of the Yamal pipeline, Gazprom no longer took part in the auction of transport capacities for the next few years.

That is why experts warned in the summer that Gazprom would make Germany’s further inexpensive gas supply dependent on the commissioning of the Nord Stream 2 Baltic Sea tube. And that although the pipeline does not currently meet the requirements of the EU and therefore has neither a certification by the Federal Network Agency nor a permit to start operations by the authorities in Mecklenburg-Western Pomerania.

A horror scenario that came true this week.

Nobody less than Putin spokesman Dmitri Peskow now declared in Moscow: "Of course, the fastest possible commissioning of Nord Stream 2 will largely offset the natural gas prices in Europe."

To put it plainly: If Nord Stream 2 still does not go online after its completion because the Russians do not want to submit to European gas directives, the price for gas will continue to rise dramatically in our country.

Experts fear that too.

It is possible "that Russia and Gazprom are strategically and deliberately restricting exports to Europe (...) in order to influence and accelerate the decision-making process of the German and European authorities regarding the certification of Nord Stream 2", says Tom Marzec-Manser , leading gas expert at ICIS, opposite the "Tagesspiegel".

The US energy expert and senior researcher at the Center for European Policy Analyzes (CEPA) Benjamin Schmitt emphasizes that “Gazprom's undersupply of European gas storage facilities over existing routes such as Ukraine and Poland has contributed to the market pressure in recent months we see today ”.

Schmitt told BILD that leading experts in the field agreed that "the Kremlin will use the situation to force the EU to quickly certify Nord Stream 2". Meanwhile, according to gas expert Schmitt, Russian officials are also saying out loud "that a quick approval of Nord Stream 2 later this year could alleviate a potential energy crisis".

This also means: If Nord Stream 2 does not go live on time according to Moscow's terms, there could be serious - planned - delivery bottlenecks in the coming winter.

Colonial Pipeline Hack: gas prices hiking and panic buying as shutdown persists

The ransomware cyberattack on the Colonial Pipeline has led to a continuous shutdown of significant stretches of the company’s system. The response is now fueling gas shortages and panic buying in portions of the 17 states that receive their fuel from this source. 

You can read the rest of the piece via the below link:

https://legalinsurrection.com/2021/05/colonial-pipeline-hack-fueling-gas-shortages-and-panic-buying/?utm_source=rss&utm_medium=rss&utm_campaign=colonial-pipeline-hack-fueling-gas-shortages-and-panic-buying