Trade data reported on Tuesday evening showed European spot gas prices surpassing 2,200 dollars per thousand cubic meters in anticipation of another turbine engine being taken offline at Nord Stream. August TTF futures on the ICE Futures exchange rose to 2,244 dollars. On July 25, settlement was 1,852 dollars, with an average of 1,720 dollars since the month began.
Midday prices for gas remained above 2,000 dollars per 1,000 cubic meters. The highest level recorded was March 4, 2022, when the spot price reached 2,300 dollars.
On July 25, Gazprom announced a further reduction in gas supplies to the European Union via Nord Stream. From July 27, Nord Stream’s daily output was reduced to up to 33 million cubic meters and the pipeline would meet only 20 percent of its planned capacity. The company shut down another Siemens turbine that had been pumping fuel.
In connection with the overhaul schedule and safety checks described by Rostekhnadzor, Gazprom paused operation of another Siemens gas turbine at Portovaya CS, according to an official statement.
Kremlin spokesman Dmitry Peskov acknowledged supply disruption reports and said Gazprom would issue a detailed technological explanation. He noted issues with the turbine but expressed hope the situation would be resolved quickly. He added that without sanctions the work would have progressed faster.
He reiterated that turbine issues persist after overhaul and the turbine has not yet arrived or been installed; it is on the way and the company would provide a formal explanation.
panic in europe
amid Gazprom updates, Ukrainian President Volodymyr Zelensky called the actions evidence that Russia is using energy as a weapon and urged European Union leaders to tighten sanctions against the Kremlin.
On July 26, European Commissioner for Energy Kadri Simson described Gazprom plan for further supply cuts as a sign that Russian gas could be halted at any moment. He emphasized unity and solidarity as essential to facing the challenge. Simson noted underground storage across the EU is 66 percent full and storage activities continue, suggesting Europe may still access more gas than it consumes in summer.
German energy company Wintershall Dea also warned that reduced output and supply cuts have damaged Gazprom’s image as a reliable supplier to Europe. Mario Mehren, president of Wintershall Dea, called the situation deeply troubling, saying trust built over decades has been damaged.
Citing a source close to Russian officials, Bloomberg reported Moscow would keep gas supplies to Europe at a minimum until the European Union lifts sanctions, signaling tougher times ahead.
Kyiv appeals to Washington
On the afternoon of July 26, Ukraine’s Prime Minister Denys Shmyhal said Kyiv plans to request a gas loan from the United States to ensure a stable heating season. Preparations are underway for what Kyiv expects to be a challenging winter and all possible options are being considered to ensure resilience.
Foreign Policy previously reported that Ukraine seeks six billion cubic meters of LNG from the United States. The plan envisions gas entering Europe via pipelines and being directed to Ukraine with reimbursement after increasing local gas production.
negotiator in Moscow
Also on July 26, Gerhard Schröder, the former German chancellor, was reported in Moscow for several days to participate in energy discussions. His wife suggested he was negotiating energy policy in the city, focusing on Nord Stream 1 gas supplies. The precise talks and participants remain unclear. The German chancellor’s office and the German embassy in Moscow did not coordinate the visit. European observers noted that Schröder had recently faced reduced privileges in Parliament and questions about his ties to Russian interests.
Peskov stated that there were no plans for a meeting with President Putin, though he did not exclude possible talks between Russian officials and Schröder. In May, the Bundestag removed Schröder from some official benefits, while he retained a pension and personal protection. Recent media reports have raised questions about Schröder’s ties to Russian companies.
why close the pipe
Disruptions began in June at the Portovaya compressor station, which handles Nord Stream gas transport. On June 14 and 15, operators reported the shutdown of the first two and then another gas compressor unit serving Nord Stream. Gazprom cited delays by Siemens in returning a required turbine from Canada, while Siemens attributed the issues to sanctions and the turbine being repaired abroad. As a result, Nord Stream gas pumping was reduced to 67 million cubic meters per day, roughly 40 percent of the planned output since mid-June.