Gazprom Is Reducing Gas Deliveries To The French Utility

Engie said that Gazprom has informed it of a “reduction in natural gas deliveries, starting today, due to a dispute between the parties regarding the implementation of certain contracts”. Gazprom’s cuts to NatGas in retaliation for sanctions related to its invasion of Ukraine have mainly targeted Germany and Eastern Europe, but now appear to be extending to France. The continent is facing its worst energy crisis in half a century, driving NatGas prices to record highs on concerns about supply shortages ahead of the winter season. French Energy Transition Minister Agnes Pannier-Runacher spoke to France Inter radio about NatGas’ restrictive measures at Engie, warning: “We are preparing for the worst-case scenario, which is a complete cut-off.” He said Moscow is using NatGas as a weapon of war. Engie’s Russian NatGas deliveries averaged 17% but have since fallen to just 4% in recent months. The good news is that the company announced that it had “already secured the necessary volumes to meet its commitments to its customers and its own requirements and has put in place various measures to significantly reduce any immediate financial and physical impacts that would could result from an interruption of gas supplies from Gazprom”. The announcement follows the EU’s announcement on Monday to prepare emergency measures to reduce the price of electricity by delinking it from rising NatGas prices. European Commission President Ursula von der Leyen said Brussels was deploying an “emergency intervention” and structural reforms to tackle rising electricity prices. “At the moment, natural gas dominates the electricity market price… with these exorbitant prices, we will have to disconnect. “We need to ensure that renewable energy is produced at a lower cost, that these costs are passed on to consumers and that windfalls are used to help vulnerable households. We need an emergency tool that will be activated very quickly, perhaps in weeks,” von der Leyen said. Europe’s energy crisis worsened in August as the price of NatGas soared, rising more than $500 a barrel of oil equivalent last week. EU NatGas prices on Tuesday morning are around €257 per megawatt hour. The electricity situation in France has worsened due to the shutdown of nuclear power plants. The country generates about 70% of its electricity needs from a fleet of 56 reactors, although 32 are offline for routine maintenance or corrosion risks. Less nuclear power has led the country to increase electricity imports from neighboring countries or become even more dependent on other sources of electricity generation. Engie executive vice-president Claire Waysand underlined that France has a buffer with NatGas storage facilities around 90% full. Across the EU, the rate is around 79.4% on 27 August, compared to the target of 80% at the beginning of November. Waysand also said the utility is in talks with Algeria’s Sonatrach as a move away from Russian supplies. Any new contract with the North African country will not be finalized until after the winter. Europe is betting that Norway could be its saving grace as the Scandinavian country overtakes Russia as the top supplier of NatGas to the energy-hit continent. The EU’s move to diversify NatGas supplies away from Gazprom is not an overnight process and could lead to several dark and cold winters. From Zerohedge.com More top reads from Oilprice.com:

title: “Gazprom Is Reducing Gas Deliveries To The French Utility Klmat” ShowToc: true date: “2022-12-12” author: “Michelle Casler”

Engie said that Gazprom has informed it of a “reduction in natural gas deliveries, starting today, due to a dispute between the parties regarding the implementation of certain contracts”. Gazprom’s cuts to NatGas in retaliation for sanctions related to its invasion of Ukraine have mainly targeted Germany and Eastern Europe, but now appear to be extending to France. The continent is facing its worst energy crisis in half a century, driving NatGas prices to record highs on concerns about supply shortages ahead of the winter season. French Energy Transition Minister Agnes Pannier-Runacher spoke to France Inter radio about NatGas’ restrictive measures at Engie, warning: “We are preparing for the worst-case scenario, which is a complete cut-off.” He said Moscow is using NatGas as a weapon of war. Engie’s Russian NatGas deliveries averaged 17% but have since fallen to just 4% in recent months. The good news is that the company announced that it had “already secured the necessary volumes to meet its commitments to its customers and its own requirements and has put in place various measures to significantly reduce any immediate financial and physical impacts that would could result from an interruption of gas supplies from Gazprom”. The announcement follows the EU’s announcement on Monday to prepare emergency measures to reduce the price of electricity by delinking it from rising NatGas prices. European Commission President Ursula von der Leyen said Brussels was deploying an “emergency intervention” and structural reforms to tackle rising electricity prices. “At the moment, natural gas dominates the electricity market price… with these exorbitant prices, we will have to disconnect. “We need to ensure that renewable energy is produced at a lower cost, that these costs are passed on to consumers and that windfalls are used to help vulnerable households. We need an emergency tool that will be activated very quickly, perhaps in weeks,” von der Leyen said. Europe’s energy crisis worsened in August as the price of NatGas soared, rising more than $500 a barrel of oil equivalent last week. EU NatGas prices on Tuesday morning are around €257 per megawatt hour. The electricity situation in France has worsened due to the shutdown of nuclear power plants. The country generates about 70% of its electricity needs from a fleet of 56 reactors, although 32 are offline for routine maintenance or corrosion risks. Less nuclear power has led the country to increase electricity imports from neighboring countries or become even more dependent on other sources of electricity generation. Engie executive vice-president Claire Waysand underlined that France has a buffer with NatGas storage facilities around 90% full. Across the EU, the rate is around 79.4% on 27 August, compared to the target of 80% at the beginning of November. Waysand also said the utility is in talks with Algeria’s Sonatrach as a move away from Russian supplies. Any new contract with the North African country will not be finalized until after the winter. Europe is betting that Norway could be its saving grace as the Scandinavian country overtakes Russia as the top supplier of NatGas to the energy-hit continent. The EU’s move to diversify NatGas supplies away from Gazprom is not an overnight process and could lead to several dark and cold winters. From Zerohedge.com More top reads from Oilprice.com:

title: “Gazprom Is Reducing Gas Deliveries To The French Utility Klmat” ShowToc: true date: “2022-11-18” author: “Carl Robinson”

Engie said that Gazprom has informed it of a “reduction in natural gas deliveries, starting today, due to a dispute between the parties regarding the implementation of certain contracts”. Gazprom’s cuts to NatGas in retaliation for sanctions related to its invasion of Ukraine have mainly targeted Germany and Eastern Europe, but now appear to be extending to France. The continent is facing its worst energy crisis in half a century, driving NatGas prices to record highs on concerns about supply shortages ahead of the winter season. French Energy Transition Minister Agnes Pannier-Runacher spoke to France Inter radio about NatGas’ restrictive measures at Engie, warning: “We are preparing for the worst-case scenario, which is a complete cut-off.” He said Moscow is using NatGas as a weapon of war. Engie’s Russian NatGas deliveries averaged 17% but have since fallen to just 4% in recent months. The good news is that the company announced that it had “already secured the necessary volumes to meet its commitments to its customers and its own requirements and has put in place various measures to significantly reduce any immediate financial and physical impacts that would could result from an interruption of gas supplies from Gazprom”. The announcement follows the EU’s announcement on Monday to prepare emergency measures to reduce the price of electricity by delinking it from rising NatGas prices. European Commission President Ursula von der Leyen said Brussels was deploying an “emergency intervention” and structural reforms to tackle rising electricity prices. “At the moment, natural gas dominates the electricity market price… with these exorbitant prices, we will have to disconnect. “We need to ensure that renewable energy is produced at a lower cost, that these costs are passed on to consumers and that windfalls are used to help vulnerable households. We need an emergency tool that will be activated very quickly, perhaps in weeks,” von der Leyen said. Europe’s energy crisis worsened in August as the price of NatGas soared, rising more than $500 a barrel of oil equivalent last week. EU NatGas prices on Tuesday morning are around €257 per megawatt hour. The electricity situation in France has worsened due to the shutdown of nuclear power plants. The country generates about 70% of its electricity needs from a fleet of 56 reactors, although 32 are offline for routine maintenance or corrosion risks. Less nuclear power has led the country to increase electricity imports from neighboring countries or become even more dependent on other sources of electricity generation. Engie executive vice-president Claire Waysand underlined that France has a buffer with NatGas storage facilities around 90% full. Across the EU, the rate is around 79.4% on 27 August, compared to the target of 80% at the beginning of November. Waysand also said the utility is in talks with Algeria’s Sonatrach as a move away from Russian supplies. Any new contract with the North African country will not be finalized until after the winter. Europe is betting that Norway could be its saving grace as the Scandinavian country overtakes Russia as the top supplier of NatGas to the energy-hit continent. The EU’s move to diversify NatGas supplies away from Gazprom is not an overnight process and could lead to several dark and cold winters. From Zerohedge.com More top reads from Oilprice.com:

title: “Gazprom Is Reducing Gas Deliveries To The French Utility Klmat” ShowToc: true date: “2022-10-28” author: “Gina Crider”

Engie said that Gazprom has informed it of a “reduction in natural gas deliveries, starting today, due to a dispute between the parties regarding the implementation of certain contracts”. Gazprom’s cuts to NatGas in retaliation for sanctions related to its invasion of Ukraine have mainly targeted Germany and Eastern Europe, but now appear to be extending to France. The continent is facing its worst energy crisis in half a century, driving NatGas prices to record highs on concerns about supply shortages ahead of the winter season. French Energy Transition Minister Agnes Pannier-Runacher spoke to France Inter radio about NatGas’ restrictive measures at Engie, warning: “We are preparing for the worst-case scenario, which is a complete cut-off.” He said Moscow is using NatGas as a weapon of war. Engie’s Russian NatGas deliveries averaged 17% but have since fallen to just 4% in recent months. The good news is that the company announced that it had “already secured the necessary volumes to meet its commitments to its customers and its own requirements and has put in place various measures to significantly reduce any immediate financial and physical impacts that would could result from an interruption of gas supplies from Gazprom”. The announcement follows the EU’s announcement on Monday to prepare emergency measures to reduce the price of electricity by delinking it from rising NatGas prices. European Commission President Ursula von der Leyen said Brussels was deploying an “emergency intervention” and structural reforms to tackle rising electricity prices. “At the moment, natural gas dominates the electricity market price… with these exorbitant prices, we will have to disconnect. “We need to ensure that renewable energy is produced at a lower cost, that these costs are passed on to consumers and that windfalls are used to help vulnerable households. We need an emergency tool that will be activated very quickly, perhaps in weeks,” von der Leyen said. Europe’s energy crisis worsened in August as the price of NatGas soared, rising more than $500 a barrel of oil equivalent last week. EU NatGas prices on Tuesday morning are around €257 per megawatt hour. The electricity situation in France has worsened due to the shutdown of nuclear power plants. The country generates about 70% of its electricity needs from a fleet of 56 reactors, although 32 are offline for routine maintenance or corrosion risks. Less nuclear power has led the country to increase electricity imports from neighboring countries or become even more dependent on other sources of electricity generation. Engie executive vice-president Claire Waysand underlined that France has a buffer with NatGas storage facilities around 90% full. Across the EU, the rate is around 79.4% on 27 August, compared to the target of 80% at the beginning of November. Waysand also said the utility is in talks with Algeria’s Sonatrach as a move away from Russian supplies. Any new contract with the North African country will not be finalized until after the winter. Europe is betting that Norway could be its saving grace as the Scandinavian country overtakes Russia as the top supplier of NatGas to the energy-hit continent. The EU’s move to diversify NatGas supplies away from Gazprom is not an overnight process and could lead to several dark and cold winters. From Zerohedge.com More top reads from Oilprice.com: