Gazprom 'cuts off Nord Stream gas supplies indefinitely'

Gazprom turns off Nord Stream gas pipeline to Europe indefinitely after finding ‘leak’ – hours after G7 countries put a cap on price of Putin’s oil

  • Russian energy giant Gazprom cuts off all Nord Stream supplies to Europe following three day-maintenance
  • Apparent ‘oil leak’ was discovered within the main turbine at a St Petersburg compressor station 
  • Russia is the world’s second largest oil exporter, behind Saudi Arabia, and its largest natural gas exporter 
  • Vladimir Putin was accused by Germany of using energy as a ‘weapon’ against the continent amid Ukraine war

Europe’s efforts to secure enough energy for winter were handed a fresh blow today after Gazprom rowed back on its own deadline to resume gas supplies via the Nord Stream pipeline as Vladimir Putin continues to weaponise the flow of energy into the continent.

The Russian energy giant said on Friday that all natural gas supplies via Nord Stream 1 would be cut off after an apparent oil leak within the main turbine at Portovaya compressor station, near St Petersburg, was discovered. 

No timeframe was given for the resumption of gas supplies into Europe, despite the fact flows were set to resume on Saturday following a three-day break for maintenance after Gazprom halted all supply on Wednesday.

The news came hours after G7 leaders agreed to impose price caps on Russian oil in a bid to curtail Putin’s coffers as he continues to wage war in Ukraine.

The Kremlin immediately responded to say it would halt the sale of oil to any countries that imposed restrictions. 

Russia is the world’s second largest oil exporter after Saudi Arabia and the world’s largest exporter of natural gas.

Europe imports about 40 per cent of its gas and 30 per cent of its oil from Russia, and Putin has already been accused of ‘energy blackmail’ by strangling the flow of natural gas into Germany via the Nord Stream supply.

The EU has said Russia resorted to energy blackmail, while the Kremlin says the disruption has been caused by maintenance issues and the effect of Western sanctions. 

Gazprom has cut off its Nord Stream gas supplies as Vladimir Putin continues to pile the pressure on Europe by weaponising the flow of energy to the continent 

Russia is the world’s second largest oil exporter after Saudi Arabia and the world’s largest exporter of natural gas. Pictured: Nord Stream 1 in Lubmin, Germany 

It comes just days after Entsog, the operator of Nord Stream 1, announced that gas delivered were halted shortly before 06.00GMT on Wednesday. The three-day works at a compressor station were ‘necessary’, Gazprom said, adding that they had to be carried out after ‘every 1,000 hours of operation’. 

Europe has been on edge over soaring energy prices as Russia curbed its gas deliveries in the wake of its invasion of Ukraine.

Germany, which is heavily dependent on Russian gas, has accused Moscow of using energy as a ‘weapon’.

Gas is used to keep industry humming, generate electricity and heat homes in the winter, and concerns are rising about a possible recession if Europe does not save enough gas and rationing is required to get through the cold months. 

It comes days after Gazprom slashed its own supply into Germany for what it described as ‘maintenance’. Last month capacity was dropped to just 20 per cent of usual levels amid tensions between Russia and the West following the Ukraine war.

With winter round the corner, European consumers are staring down the barrel of huge bills to power and heat their home. Some countries like France have warned that rationing is a possibility. 

Earlier today, the ministers from the club of wealthy industrial democracies confirmed their commitment to the plan after a virtual meeting.

They said, however, that the per-barrel level of the price cap would be determined later ‘based on a range of technical inputs’ to be agreed by the coalition of countries implementing it. 

‘Today we confirm our joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally,’ the G7 ministers said.

‘The provision of maritime transportation services, including insurance and finance, would be allowed only if the Russian oil cargoes are purchased at or below the price level ‘determined by the broad coalition of countries adhering to and implementing the price cap.’

The ministers said they would seek a broader coalition of oil importing countries to purchase Russian crude and petroleum products only at or below the price cap, and will invite their input into the plan.

However, some G7 officials expressed concerns that the price cap would not be successful without participation of major importers such as China and India.

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