Ukraine’s transmission system operator has suspended contractual obligations to transport gas through one of its main pipelines with Russia due to enemy troop activity, in a move that could reduce flows to Europe.
Ukraine’s gas transmission system operator said the transit would stop at 7 a.m. Wednesday at the Sokhranivka point along the smaller of two pipelines supplying gas from Russia. It said it was unable to conduct operations at a border compressor station in Luhansk – a region of Ukraine that Moscow claims as an independent state due to the Russian occupation.
“The occupying forces’ interference in technical processes and changes in the operation of gas transmission system facilities, including unauthorized gas extractions from gas transit flows, endangered the stability and security of the entire Ukrainian gas transportation system,” it said in a statement. a statement on Tuesday.
Ukraine’s gas transmission system operator said nearly a third of Russian deliveries going through the country to Europe would be affected, but it would still be possible to meet the needs of its European customers by diverting gas to the Sudzha connection point.
Ukraine’s pipeline operator has previously warned that war-related damage to the system could jeopardize flows, but it is the first time since the invasion that it has declared force majeure, pointing to risks to Russia’s gas supply to Europe .
Last year, EU countries imported 155 billion cubic meters of Russian gas, of which about 40 billion cubic meters passed through Ukraine. Nord Stream 1, the largest pipeline from Russia to Germany, has a capacity of 55 bcm.
The announcement of the shutdown pushed future contracts pegged to European wholesale gas prices nearly 6 percent higher on Tuesday to nearly €100 per megawatt-hour, wiping out previous losses.
Yuriy Vitrenko, CEO of the Ukrainian state gas company Naftogaz, blamed Russia. “Gazprom has been duly notified that Ukraine is no longer responsible for gas transit through the Russian-occupied territories,” Vitrenko said.