Ukraine’s gas pipeline operator said Sunday that natural gas transit through its system continues “as usual” and that it has not recorded a drop in pressure following an explosion in the area. Kharkiv region, the country’s second largest city. The operator of Ukraine’s gas transmission system added that it was not able to visually inspect the site because of military activity in the city.
Ukraine is one of the main routes of Russian gas transmission to Europe. Concerns about disruptions due to fighting or intentional has sent European gas prices soaring, putting pressure on consumers and energy-intensive businesses.
Even before the fighting broke out, the flow of Russian gas through Ukraine had been reduced as Gazprom, the Russian monopoly, kept volumes low by historical standards. Since Friday, gas flows from Russia to Ukraine have returned to the full amount agreed under long-term contracts, about 110 million cubic meters per day.
Russian news agency TASS reported that Gazprom on Sunday continued to deliver gas through Europe at the request of its customers.
Oil and gas in particular remain Russia’s key economic lever for Europe, and Moscow may see more value in maintaining production than cutting off major customers. like Germany and Italy at the moment.
European energy ministers are expected to meet on Monday to discuss soaring oil and gas prices. On the table could be measures to reduce Europe’s vulnerability to gas market fluctuations, such as the requirement to maintain higher gas reserves. Having a lot of stock can help reduce supply and lower prices during times of high demand. However, analysts say gas prices are likely to remain high for a year or more.
Martin Young, an analyst at Investec, an investment bank, forecasts that continued high gas prices could mean UK consumers, who have just been hit by a more than 50 per cent increase in energy bills %, could be affected with a similar increase in the fall.
On the oil front, OPEC Plus, a group of major oil producers that includes Russia, is scheduled to meet on Wednesday to discuss output levels. The group is facing Western pressure to increase production to reduce high oil prices, which briefly hit around $105 a barrel on Thursday.
While the West has so far been careful not to target Russia’s oil and gas exports with sanctions, British lawmakers are growing increasingly annoyed with the nearly 20% stake held by BP, the company. oil and gas is based in London, owned in Rosneft, a state controlled company. .
British opposition politicians have called on BP to sell the share it bought in 2013, although it is difficult to know who other than the Russian government will buy it.
BP’s CEO, Bernard Looney, and his predecessor, Bob Dudley, serve on Rosneft’s board of directors. The company’s CEO, Igor Sechin, is a longtime associate of President Vladimir V. Putin and has the target of Western sanctions in the past.
https://www.nytimes.com/2022/02/27/business/ukraine-gas-explosion-kharkiv.html Ukraine’s pipeline operator says gas continues to flow after explosion