Kremlin-controlled Gazprom slashes gas supplies to France

Gazprom informed Engie, a French utility, that it would reduce gas deliveries starting today because of a dispute over the application of certain contracts.

This move adds to the already high demand for European energy supplies. France has asked companies to create energy savings plans by the end of next month. Meanwhile, the EU is preparing emergency plans to lower the cost of energy.

Engie stated that it had secured enough volumes to fulfil its customer commitments and meet its own needs. Engie also took several steps to reduce the financial and physical impact of Gazprom’s interruptions to its gas supply.

As Russia prepares to close the Nord Stream pipeline to Germany, which is vital for gas supply to France, for planned maintenance three days after tomorrow, it will cut off French gas supplies.

Due to Russia’s cut, the pipeline is operating at only 20pc capacity. There are concerns that flows might not resume after completion of work.

Engie maintained that the latest Gazprom cuts would have little impact on France.

According to the group, Russia’s deliveries had decreased “substantially”, since the start of the conflict in Ukraine. The most recent monthly supply was 1.5 terawatt hours. This compares with the group’s annual supply of Europe exceeding 400 terawatt hours.

Engie stated that it has decreased its dependence on Russian energy since the beginning of the war, and had taken measures to minimize the effects of Gazprom’s cut to suppliers.

The move adds to the pressure on European gas flows already under strain from Putin’s cut of capacity in the Nord Stream pipeline.

Yesterday, France’s Prime Minister Elisabeth Borne urged companies to create energy savings plans by the end of next month. She warned that they will be the first to be affected if France has to cut off the supply of electricity and gas.

Increasing pressure on the UK to follow suit, the EU is currently preparing emergency plans to lower the cost of energy.

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.