July 21, 2022 06:26 GMT
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Russian gas flows resumed on the Nord Stream 1 pipelines this morning as originally planned once the maintenance period had finished.
- Gazprom and latterly, Putin had said earlier in the week that flows would begin again today but the flow rate would be compromised at a similar rate to before the maintenance had begun at circa 40% capacity. Russia blamed the need for a turbine to be returned for running at that rate. They are still waiting on its return.
- The first hour of gas flows show the pipe running at 30% capacity while orders for flows on the pipeline released yesterday show requests at 40% capacity. The Nord Stream 1 operator said this morning it will take time to ramp up flows.
- In near term risks, Putin has warned that flows could fall to 20% as early as next week, following the need for further turbine maintenance which is being complicated by sanctions.
- The initial turbine that has resulted in flows being stuck at 40% has been released by Canada and is en-route to Russia via Germany but is not expected to be fully operational until early August based on Russian media reports.
- European gas prices have fallen in response to the news of a resumption in flows with growing sentiment across Europe over the last week that flows were not going to return and if they did - at an unknown level.
- TTF AUG 22 down -5% at 147.25€/MWh